Employers

Alison Griffiths Excerpts

Wednesday 11th November 2026 Commons Chamber

[Julia Lopez]

That was a policy that was put forward. My right hon. Friend the Member for Richmond and Northallerton (Rishi Sunak) decided to change it because the economy was in a challenging state after the pandemic and we needed to think again about whether it was the right thing to put that pressure on employers, so we went back on that policy.

To return to what employers have been going through, they have the ongoing stress and responsibility of employing people and wanting so desperately to continue to provide opportunity for them. They have to think about the other families who are relying on them as small business founders who are pushing to provide a community with a great service and a happy experience. They are pub landlords, builders, restaurateurs, service firms, salon owners, café owners, shop owners. Work, work, work, work, work.

Employers are not just working people; they are uber-taxpayers. They made it through covid, they made it through an energy crisis, but many are now saying that they cannot make it through Labour. When Labour broke its manifesto commitment in its first Budget by increasing national insurance, it did so in a highly destructive way. Not only did it increase the rate, but it lowered the point at which employers start paying NI on an employee’s salary. Lowering that threshold hit part-time, entry-level and lower-wage jobs the hardest, making employees so much more expensive to retain. I do not know about you, Madam Deputy Speaker, but suddenly, countless businesses in my constituency started sounding the alarm, especially those employing people who need flexible, part-time hours because of caring responsibilities.

[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

I thank the shadow Minister for highlighting the impact on part-time workers. My constituency is a very seasonal area on the coast, but we also have students and OAPs, all of whom want part-time work, yet under this Government they are finding that so much harder to achieve.

[Julia Lopez]

My hon. Friend is absolutely right to highlight that challenge in seasonal working, which creates an extra burden for employers, many of whom have to work to fill the shifts they would otherwise have used temporary staff for, creating enormous pressure.

People are writing to me in despair because their adult child simply cannot get a first break in the workplace, and it is not for want of trying. Businesses warned the Government that this would happen. The hospitality, retail and care sectors all raised the alarm about the impact of higher employer national insurance. What was Labour’s response? The unemployment Act, which makes it riskier to employ people as well as more expensive. The national insurance increase came into effect in April 2025. By April this year, there were 210,000 fewer payrolled employees than a year earlier. There are now 1 million young people not in education, employment or training, and the Government are in denial about the reasons why.