Youth Unemployment

Steve Darling Excerpts

Wednesday 28th January 2026 Commons Chamber

[Sarah Olney]

The hon. Gentleman always makes constructive interventions. He is absolutely right that we need to look at what works. We need to focus on this issue not just for the health and benefit of our young people but for the economy as a whole.

Although we should continue to invest in technological breakthroughs, I am concerned that the Government do not have a strategy for our young people who could be pushed out of the job market by automation. I would be grateful if the Minister responded to that.

There is also a lack of alternatives for young people who wish to upskill, as the apprenticeship pathway is so limited. Businesses tell me that the apprenticeship levy does not work, despite the Government’s attempts at reform. The Liberal Democrats have long called for reform to replace it with a wider skills and training levy, which would give businesses real flexibility about how they spend the money to train their staff and, consequently, provide young people with a better avenue to enter the workforce. The decision taken to defund level 7 apprenticeships for over-22s risks limiting those opportunities. In 2024-25, 51% of all apprenticeship starts were for those aged 25 and over. That is a critical skills pipeline in areas that are key to economic growth, and while the economy is changing so rapidly, we need to provide opportunities for older workers to retrain so that they can continue to find meaningful work later in life.

The Liberal Democrats would fix the skills and recruitment crisis by investing in education and training, including the availability of apprenticeships and career advice for young people. The current system needs to be reformed. That would include boosting the take-off of apprenticeships by guaranteeing that they are paid at least the national minimum wage from the first year, creating new lifelong skills grants for adults to spend on education and training throughout their lives, and expanding vocational training. Although the Liberal Democrats welcomed discussions in the Budget regarding a wider youth guarantee and a growth and skills levy package, I have yet to understand the timeline for implementation. With youth unemployment rising, I encourage the Government to take quick and active steps to deliver that package.

[Steve Darling (Torbay) (LD)]

In Torbay, we have an incredible organisation called Sound Communities. Some young people are not in the position to take up an apprenticeship because, having suffered significant trauma in their lives, they need to build up their confidence. Sound Communities helps these youngsters get themselves in the right position to take up their place in this world. Does my hon. Friend agree that what we need is long-term funding to support these youngsters, so that they can have the opportunities and futures that they deserve?

[Sarah Olney]

My hon. Friend is absolutely right. There are groups of young people who are facing specific barriers to entering employment, and we need to do all we can to provide them with sustained support to get into and stay in the workplace.

Much of the UK’s current workforce challenges are due to the mistakes made by the current Government, with perhaps no bigger own goal than the surprise increase in employer national insurance contributions in the Chancellor’s first Budget. Almost every business that I, and I am sure many other Members, speak to tells me that the NICs rise blindsided it and has since seriously damaged its cash flow and ability to hire and retain staff. That policy alone has been so damaging to the business sector and has created an environment in which companies are discouraged from hiring young people.

Recent Government decisions include the devastating business rates hike in the Chancellor’s most recent Budget. This is causing huge damage to hospitality firms, with many now considering whether their business remains viable. Our hospitality businesses, which so frequently provide young people with their first jobs, are now on their knees. They need support from the Government. The Government’s statement yesterday on cutting business rates for pubs was a good first step, but we need wholesale reform of our business rates system. That is one more reason why the business community felt so betrayed by the previous Conservative Government, who promised reform but did nothing to help our struggling businesses.