Jobs Market

Lord Vaux of Harrowden Excerpts

Monday 13th October 2025 Lords Chamber

[Baroness Sherlock (Lab)]

My Lords, given the levels of inactivity due to health over which the noble Viscount’s Government presided, that is a brave question, but let me answer it none the less. This Government are not simply waiting for the review. The Timms review is looking specifically at PIP which, as the noble Viscount knows, is a benefit that applies in and out of work. As I have told the House before, this Government have looked carefully at three things. One is what happens to people who are on benefits. This House backed the Government in making the difficult choice to change the incentives so that for new people coming in, we would reduce by about half the extra amount of money you get on universal credit. The second is to invest up to £1 billion over the scorecard in making sure we give people the support they need. People out there want to get jobs, and we have to help them. Finally, we have invited Charlie Mayfield to produce a report looking at employers. Every time someone loses a job, it can be an £8,000 loss to the employer from lost productivity. We are investing in all three of those things.

[Lord Vaux of Harrowden (CB)]

My Lords—

[Lord Baker of Dorking (Con)]

My Lords—

--- Later in debate ---

[Captain of the Honourable Corps of Gentlemen-at-Arms and Chief Whip (Lord Kennedy of Southwark) (Lab Co-op)]

We will hear from the Cross Benches next.

[Lord Vaux of Harrowden (CB)]

The Minister quite rightly mentioned young people and the importance of opportunities for them, but there seems to be increasing evidence that entry-level opportunities are reducing and that it is becoming more difficult for young people to take that all-important first step into work. So can the Minister explain why the Government are still insisting on pushing through a change to employment law that their own impact assessment says will actually make it harder for young people to find a job?

[Baroness Sherlock (Lab)]

My Lords, the Government are making a significant investment in young people. I assume the noble Lord is referring to employer national insurance.

[Lord Vaux of Harrowden (CB)]

Day one unfair dismissal rights.

[Baroness Sherlock (Lab)]

We have to have a level playing field in employment rights. We are investing in supporting young people with a youth guarantee. For young people who are intensively looking for work, there should be no fourth alternative to education, training or a job. To put our money where our mouth is, we have announced that we will give young people who have spent 18 months looking for a job on universal credit a guaranteed job. Young people should be out there either earning or learning; we will make sure they can.