Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of increased employer National Insurance contributions on employment opportunities for young people in the hospitality sector, and of the consequences for the number of young people who are not in education, employment or training.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

A detailed assessment of the policy has been published by HMRC in their Tax Information and Impact Note. The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.

The Office for Budget Responsibility (OBR) also published the Economic and Fiscal Outlook (EFO), which sets out a detailed forecast of the economy and public finances. With all policies considered, the OBR's March 2025 EFO forecasts the employment level to increase from 33.6 million in 2024 to 34.8 million in 2029.

This Government is committed to providing young people with the best start to their working lives. The Government will deliver a Youth Guarantee so that all 18 to 21-year-olds in England have access to education, training or help to find a job or an apprenticeship. To support this, we are funding eight trailblazers across England to test how different elements of the Guarantee can be brought together into a coherent offer for young people. The Government is also expanding Sector-based Work Academy Programmes to provide 100,000 places in 2025/26, providing a work placement, training and a guaranteed interview that can kickstart a new career and support young people into work.

Question to the Department for Business and Trade:

To ask His Majesty's Government what assessment they have made of the effect of rising labour costs on businesses operating in the hospitality and retail sectors, and what steps they are taking to ensure employment remains viable in those sectors.

Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts. A full Impact Assessment on NMW was published and received a Green ‘fit for purpose’ from the Regulatory Policy Committee on Tuesday 4 February 2025.

The Government will protect the smallest businesses by increasing the Employment Allowance to £10,500. This means that this year, 865,000 employers will pay no NICs at all, more than half of employers see no change or gain overall from this package and employers will be able to employ up to four full-time workers on the National Living Wage and pay no employer NICs.

The Hospitality Sector Council and the Retail Sector Council continue to consider key issues and opportunities, including employment and how to encourage growth across both sectors.

Question to the Department for Work and Pensions:

To ask His Majesty's Government what estimate they have made of the number of people who have entered the Universal Credit system as a consequence of increased employer labour costs, including higher employer National Insurance contributions, particularly in low-margin sectors.

Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)

No such assessment has been made.

Data on the Universal Credit caseload, including up-to-date trends information, is available at: https://stat-xplore.dwp.gov.uk

Guidance for users is available at: https://stat-xplore.dwp.gov.uk/webapi/online-help/index.html

Question to the Department for Work and Pensions:

To ask His Majesty's Government what plans they have to implement welfare strategies specifically for those areas excluded from highly clustered, high-productivity economic sectors.

Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)

Our Get Britain Working White Paper set out our cross-Government plan to get people into work and on in work.

As part of that, we are planning to offer greater employment support in every part of the country to those who need it to get into work and fulfil their potential.

This Government is also taking action to deliver strong, secure, and sustainable economic growth to boost living standards for working people in every part of the UK. Central to this will be the Industrial Strategy, which will help us seize the most significant opportunities and create the most favourable conditions for growth and investment in key UK sectors – spread throughout the country. Through our 643 Jobcentres and unique high street presence, DWP will help growth driving sectors recruit the people they need to thrive.

Government has held several skills summits with industry, including on construction, clean energy and water, and has already signed a Memorandum of Understanding with DEFRA to improve JCP customer access to a wider pool of vacancies, with others to follow with relevant sectors.