Draft National Minimum Wage (Amendment) Regulations 2026 Debate
Full Debate: Read Full DebateAndrew Griffith
Main Page: Andrew Griffith (Conservative - Arundel and South Downs)Department Debates - View all Andrew Griffith's debates with the Department for Business and Trade
(1 day, 10 hours ago)
General CommitteesIt is a pleasure to serve under your chairmanship, Mr Stringer.
I wish the Minister all the very best; she has already demonstrated that she is an effective performer on behalf of her constituents. In your time, Mr Stringer, you will have seen many Ministers pushed out to defend the indefensible, but very rarely are they caught in the action of passing a statutory instrument while, in real time, the Treasury is peddling and briefing stories of a U-turn—before the ink is even dry, before the vote has been taken and before the regulations have been agreed to.
Why is that? I think colleagues across the House, who want the best for our country and for young people, recognise that there is a growing crisis of young people being unable to access the work market. The latest figures show that 957,000 young people are not in education, employment or training. Although the Government inherited that number, they are actually making it worse—and that is before the impact of the regulations and the unemployment Bill, with which the Minister is deeply acquainted.
If we look at the overall level of young people who wish to find work—those who are formally looking for work—we see that the figure for youth unemployment is 16.1% for young people between the ages of 16 and 24, the very young people in respect of whom the above-inflation rate changes make up the largest part of the regulations before us. Why would any of us in this Committee be passive or neutral about passing measures that every economist and business group that has looked at them believes are likely to discourage firms from taking a chance on those young people?
I often find myself in common cause with the Federation of Small Businesses. It does wonderful work and represents the smallest and most fragile businesses across all our constituencies, which we all want to see succeed on our high streets and grow. They are where growth comes from. The same is true of the British Chambers of Commerce, which also has concerns about the approach the Government are taking to the wage rates for 16 to 20-year-olds—people getting their very first chance at work.
It is far less often that I find myself in common cause with the Tony Blair Institute or the Resolution Foundation, which have both, in the last 48 hours alone, reiterated their concern about the changes that the Minister advocates we vote for and pass today. This is not some Tufton Street think-tank expressing concern but the Resolution Foundation: the finishing school for aspirant young Labour Ministers—sadly, some of the talent that sits elsewhere on the Labour Benches is overlooked—and the ideological heart of the modern Labour party. The Resolution Foundation has said that this change is the wrong direction to go in and called for a moratorium.
I am sure that right hon. and hon. Members would not dream of taking out their phones under your chairmanship, Mr Stringer, but if they did so right now and looked at the Financial Times, they would see that Treasury sources are briefing that the Department will be scaling this measure back. That would be part of what I think is U-turn No. 16, although it is very hard to tell—being a bear of little brain, I cannot always keep up with the number of U-turns the Government have made.
My final words come from the author of this strategy herself: the right hon. Member for Ashton-under-Lyne (Angela Rayner), who was my interlocutor throughout the passage of the 300-page, 1970s, red tape, job-destroying unemployment Bill. Recently, albeit after she had left Government and perhaps moved beyond the influence of those on the Treasury Bench, she spoke about the overall challenge of employment for our wider economy—the coastal, seasonal and hospitality businesses on the frontline, where so many young people, whom we are all here to represent in a non-partisan fashion, had their very first shot at a job, as I did myself. The right hon. Lady said:
“I think we’ve got to recognise, it’s not even a double whammy, it’s not even a triple whammy. I talk about the challenges on business rates, the challenges on VAT, the challenges of the minimum wage going up and the living wage going up”.
Will the Minister update us on the Chancellor’s latest thinking on this measure? What does she think about the difficult challenge for young people having their first shot at life and opportunity?