EU Directive: Adequate Minimum Wages

Lord Hunt of Wirral Excerpts

Wednesday 18th March 2026 Lords Chamber

[Lord Leong (Lab)]

First, let me say that collective bargaining is not a dirty word. The Government recognise the important role that collective bargaining can play in supporting good workplace relations. However, the United Kingdom has traditionally taken a flexible, decentralised approach to setting wages. Our focus remains on securing a strong statutory minimum wage through the national minimum wage and the national living wage, guided by the independent Low Pay Commission. Alongside that, we continue to support fair work practices and to promote constructive engagement between employers and workers across all sectors.

[Lord Hunt of Wirral (Con)]

My Lords, the number of young people not in education, employment or training is approaching 1 million. What an utterly devastating waste of human potential. The Government have announced a £3,000 taxpayer-funded subsidy for hiring eligible 18 to 24 year-olds. In saying that, are they not admitting to employers, “We will now subsidise you to hire the very people you could not otherwise afford to take on because we put up employers’ national insurance”? Will the Minister at last admit that this proposal is an admission of abject failure by this Government?

[Lord Leong (Lab)]

My Lords, first, backing young people is one of the most important investments that we can make in the country’s future. We are determined to tackle the rise in youth unemployment, which has been constantly rising for the past 10 years or so, by expanding practical routes into work, boosting apprenticeships and giving employers the clarity that they need. We are very proud to say that the youth guarantee scheme is unblocking thousands of jobs. We are investing more than £1 billion and unlocking 200,000 jobs and apprenticeship opportunities by reducing the cost of hiring for business. This Government are determined to get young people back into work.