(2 weeks, 4 days ago)
Lords Chamber
Lord Cameron of Lochiel
To ask His Majesty’s Government what assessment they have made of the impact of the Employment Rights Act 2025 on employment opportunities for young people in Scotland.
The Minister of State, Department for Business, Innovation, Science and Trade (Lord Sarwar) (Lab)
My Lords, the Government have published a comprehensive assessment of the Employment Rights Act in consultation with experts. The assessment shows that the Act could benefit 18 million workers across the UK and could increase employment. Our analysis further shows that young workers stand to be amongst the biggest beneficiaries of these reforms. Scotland is also expected to benefit more significantly, with around 55% of workers projected to gain from the Act.
Lord Cameron of Lochiel (Con)
I begin by warmly welcoming the Minister to his first Question at the Dispatch Box. In the latest labour market trends published by the Scottish Government, the unemployment rate of those aged 16 and over in Scotland was estimated at 5.1%, up 1.4% over the year, and above the UK rate of 4.9%. We know that the Employment Rights Act will take effect over the coming months. The views of these Benches on the deficiencies in that legislation are well-known. What contingency measures are Ministers putting in place, should the Employment Rights Act lead to even higher levels of unemployment among young people in Scotland?
Lord Sarwar (Lab)
I thank the noble Lord for the question. He and I debated these issues in a very different Parliament not so long ago, and I am sure that neither of us imagined we would be debating in this Chamber today. As he knows, a lot of these responsibilities are devolved, so we have to make an assessment of the impact of the Employment Rights Act; but let us not forget that the Scottish Government are responsible for schools, high schools, colleges, universities, apprenticeships, the apprenticeship levy rates and so much more. Therefore, although we are confident that the Employment Rights Act will not have a detrimental impact on young workers, we need fundamental reform in Scotland in those other areas.