Youth Unemployment

Diana Johnson Excerpts

Wednesday 28th January 2026 Commons Chamber

[The Minister of State, Department for Work and Pensions (Dame Diana Johnson)]

I beg to move an amendment, to leave out from “House” to end and insert:

“welcomes the Government’s commitment to invest in young people’s futures; notes that the UK has the second highest youth employment rate in the G7; recognises that the Government announced more than £1.5 billion of investment over the next three years, consisting of £820 million of funding for the Youth Guarantee to support young people to earn or learn, and £725 million for the Growth and Skills Levy; further welcomes that the expanded Youth Guarantee will reach almost 900,000 young people, including through Youth Hubs in every area in Great Britain and a new Youth Guarantee Gateway; further notes that this investment will also create around 300,000 more opportunities to gain workplace experience and training; and further recognises that, as part of the Youth Guarantee, the Government is breaking the cycle of unemployment by guaranteeing paid work to around 55,000 young people aged 18 to 21 who have been on Universal Credit and looking for work for 18 months.”

In the north, we would say that the hon. Member for Faversham and Mid Kent (Helen Whately) has some brass neck to make the speech she has just delivered. As an MP who has been in the House for some time, it might be helpful to us all if I remind the hon. Lady about her party’s record over the past 14 years. Her party fumbled the handling of the pandemic, setting back a whole generation of kids. It failed to deal with the growing mental health crisis among young people, left school buildings to crumble, and decimated youth centres.

Let us just look at the facts about youth employment specifically. Under the last Conservative Government, the number of young people not in education, employment or training grew by 45% in just three years. Scarily, that left almost 1 million young people—one in eight—on the sidelines when the Conservatives were chucked out of office.

[Several hon. Members rose—]

[Dame Diana Johnson]

I am just going to complete the Conservatives’ record, because I think it would be beneficial for us all to hear it. When the Conservatives were chucked out, the youth unemployment rate stood at 13%, compared with just over 9% two years earlier, and the number of young people economically inactive due to long-term sickness had more than doubled in five years to over a quarter of a million on the Conservatives’ watch. They also failed to support young people in the face of the changing retail sector, for example. Many young people start their careers in that sector—I certainly started with a Saturday job—but retail job opportunities have fallen since 2017 as new technology changes how people shop and how shops employ people. The Conservatives took no action on that, so their legacy for young people looks pretty dismal from virtually every angle.

[Graham Stuart]

Will the Minister give way?

[Dame Diana Johnson]

I will give way to my near neighbour.

[Graham Stuart]

In my experience, my neighbour is always a fair and credible person, so will she confirm that youth unemployment reduced over the 14 years that the Conservatives were in government, rather than focusing on some selective period over covid in order to give an entirely partisan and biased view of the statistics? The numbers went down, did they not? The only Government who put up youth unemployment by 45% were the last Labour Government.

[Dame Diana Johnson]

The right hon. Gentleman, who is a close neighbour in East Yorkshire, says that I am being partial and only giving part of the picture. I think I have been setting out a very full explanation of what the Conservatives delivered for young people over 14 years.

To expand on that point a little, the Conservatives are now talking about the need to increase apprenticeships, for example. On their watch, there was a collapse in youth apprenticeships—starts were down by almost 40% under the Conservative Government over the past decade, leaving this Labour Government to reverse that decline. They have also been critical of the welfare system for trapping people out of work; they seem to have forgotten that they presided over it for 14 years. The Conservatives introduced that system, and it has now been left to us to address the disincentive to work that they built into it. We started to deal with that task through the Universal Credit Act last year.

[Joe Robertson (Isle of Wight East) (Con)]

Will the Minister give way?

[Dame Diana Johnson]

No, I will make some progress. Put simply, the Conservatives cut off opportunity for young people. They wrote them off, and then they blamed young people for the position they were in. On the Government Benches, we know that young people are this country’s future and that their success is Britain’s success. We are not prepared to sit on our hands and let all that talent and potential go unused. That is not good enough for those young people, and it is not good enough for this country, which needs the contribution they can offer more than ever and not just now, but for the next 40 years.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

Will the Minister give way?

[Dame Diana Johnson]

No, I am going to make some progress. We are investing in young people to turn around the dire legacy that the Conservatives left behind. We are supporting young people so that they can fulfil their potential, breaking the cycle of wasted talent cascading down generations. We are starting already to see some signs of progress. We have got record levels of employment and youth employment is up by 153,000 in the past year, but the scale of the crisis brewed up by the Conservatives requires much more than that. The number of young people neither learning nor earning is equivalent to three cities the size of Hull, so we know that there is more to do.

[Dr Evans]

Will the Minister give way?

[Dame Diana Johnson]

I will later on, but I want to get this on the record. We know that if someone falls out of the workforce—[Interruption.] The Conservative MPs chuntering from a sedentary position might just want to listen to this, because it is about the future of our country. We know that if someone falls out of the workforce when they are young, they can lose out on £1 million in earnings, and it costs the state a similar amount to support them, but if we can ensure that they get the right opportunities and support early on, we can change their life stories for the better. That is why we are helping more young people into work, and it is why youth employment is a priority for us in the DWP.

[Jim Dickson (Dartford) (Lab)]

In my constituency and across Kent we are pleased to be one of the trailblazer areas for the Connect to Work programme, which started under this Government, not the last Government. It gives people personalised support to stay in work and to get jobs in the first place, ensuring that they have a long-term future in the workplace. Is that not the sort of serious intervention we need to deal with unemployment among young people?

[Dame Diana Johnson]

My hon. Friend is exactly right. That is the kind of initiative that will help deliver for these young people who are out of work, particularly with health problems, health conditions and disabilities.

I think all of us in the House would recognise how disheartening it can be for young people who are looking for work who cannot find that opportunity. They may not have the confidence or knowledge to apply for the jobs that are out there. Let us put ourselves in the shoes of an 18-year-old who has perhaps lost their way a little bit and does not have the confidence; it can be difficult for them to go into a jobcentre to find out what opportunities are available. That is why, as part of the youth guarantee, we are expanding the DWP youth hubs located in places such as football clubs and other sports facilities to more than 350 areas across Great Britain. I accept that youth hubs were part of the previous Government’s plans to deal with youth unemployment, but they were small in number. We are expanding them to 350.

Youth hubs are helping people such as Erin, a young woman who was unemployed for two years and struggling with her motivation. After visiting a youth hub based at Crystal Palace football club, she was able to complete a work placement before being offered a permanent job. That came off the back of joining a hospitality programme, which gave her valuable experience and confidence. It goes to show what young people can achieve when they are motivated, confident and have that self-belief. That is why the expansion of youth hubs forms just one part of our wider youth guarantee, which is designed to make sure that no young person is left behind.

[Sir Roger Gale (Herne Bay and Sandwich) (Con)]

In East Kent, there is a company called HatHats, which runs coffee bars. The proprietor philanthropically employs hard-to-employ young people. In the last 12 months for which figures are available, the profit on all 25 of its outlets was £12. As a direct result of this Government’s policies, those young people are losing out on the opportunities that the Minister is describing.

[Dame Diana Johnson]

I will come on to talk a little about some of the accusations levelled at the Government in relation to national insurance contributions, so I shall deal with that point later in my speech, if I may.

The youth hubs will offer a helping hand, whether with writing a CV or with obtaining a work placement to include on a CV. We have announced that over the next three years, we will invest £820 million to support almost 900,000 young people who are on universal credit and looking for work. There will be new dedicated work support sessions, followed by intensive, tailored assistance to help those young people secure the right job, training or learning opportunity. We are backing that up by funding about 300,000 more opportunities for people to gain work experience and training in sectors such as construction and hospitality.

[Andrew Pakes (Peterborough) (Lab)]

I thank my right hon. Friend for her great explanation of youth hubs. We have just opened one at the Peterborough United—Posh—stadium, bringing together all sorts of partnerships. A number of issues are raised by the young people I speak to there, which the youth hub addresses. One of those issues is an element of the Opposition’s record that they have not talked about, namely the decimation of in-work support, and of career services in schools to give young people advice and help. Opposition Members talked a lot about apprentices and undergraduates, but they did not talk about levels 2 and 3, and the engine-room apprentices we need. The youth hub will start getting us back to that in Peterborough.

[Dame Diana Johnson]

My hon. Friend has made his point very well indeed.

Let me return to the subject of the youth guarantee. There will be guaranteed jobs for about 55,000 people over the three years. Companies have already shown an interest in taking on such employees, including E.ON, JD Sports, Tesco and Tui, and we are grateful for the offers that they are making. We Labour Members have tackled these challenges before, under the last Labour Government, through the new deal for young people, and we will do it again now.

[Steve Race (Exeter) (Lab)]

Along with the youth hubs and the youth guarantee, there is the £725 million investment in apprenticeships. With its new technical excellence college status, Exeter college in my constituency is becoming one of the biggest providers of apprenticeships in the country. Does the Minister agree that that stands in stark contrast to the 50% increase in youth unemployment under the last Government?

[Dame Diana Johnson]

My hon. Friend has made his case very well. He referred to the £725 million for the growth and skills levy, which is part of the more than £1.5 billion that has been made available for employment and skills support in the Budget. That is very much needed after the dramatic decline in the number of young people starting apprenticeships under the last Government, which we will reverse. At the same time, we are strengthening our world-leading universities.

[Damian Hinds (East Hampshire) (Con)]

Will the Minister give way?

[Dame Diana Johnson]

I will make some progress, because many Back Benchers want to speak.

The skills White Paper sets out our plan to build a more specialised and more efficient higher education sector that will better meet the needs of the economy. The graduate economic inactivity rate is now at its lowest on record, and we want to build on that. We recognise the need for modern technical skills, and not just the old academic subjects. I saw that for myself at the Ron Dearing university technical college in Hull only last week—young people honing their skills and getting a brilliant education.

No matter what path young people choose, we want them to have the skills to succeed. Skills are vital in the world of work today, but more than a quarter of all vacancies are skills shortage vacancies. That is why, last year, the Prime Minister set out our bold ambition for two thirds of young people to enter higher-level education or training. We have added adult skills to the Department for Work and Pension’s brief, to help us join up employment support and skills more closely, so that young people have genuine pathways into good jobs. We are significantly expanding sector-based work academy programmes—SWAPs—in England and Scotland; there will be more than 145,000 additional places over the next three years. Just today, our colleagues at the Department for Science, Innovation and Technology announced a new package to give people the skills that will enable them to seize the opportunities that artificial intelligence will bring. That includes an expansion of free AI foundation training for all workers, to upskill 10 million people by 2030. All this is about opening up opportunities for young people.

However, we want to make sure that no stone is left unturned. Last month, the Government unveiled our national youth strategy, which is backed by £500 million. It will rebuild the youth services that the Conservative party decimated, and help more young people transition into adulthood. The Secretary of State has commissioned Alan Milburn to complete a wide-ranging investigation into the causes of youth inactivity, and to come up with policy solutions across the piece. As a former Health Secretary, he is well placed to give particular focus to the role of health in all this. That is needed, because over a quarter of young people not in employment, education or training now cite long-term sickness or disability as a barrier—more than double the figure in 2013-14.

Too many people are shut out of the labour market by disability or ill health. This has worsened, especially since covid, so we are rolling out a £1 billion Pathways to Work offer, which brings together programmes such as Connect to Work, which my hon. Friend the Member for Dartford (Jim Dickson) referred to and which I have seen in action in Lewisham, where I met a neurodiverse young man who told me that the personalised support that he was receiving from the team was helping him to stay in work; and WorkWell, which is providing really impressive integrated work and health support that I recently had a chance to see in Cambridge. Pathways to Work will ultimately guarantee access to work, health and skills support for disabled people and those with long-term health conditions who are claiming out-of-work benefits. We already have 1,000 Pathways to Work advisers on hand to provide better one-to-one support. We know that prevention is better than cure, so we want to avoid people falling out of work due to ill health wherever possible, and employers have a unique role to play.

[Sarah Smith (Hyndburn) (Lab)]

Does my right hon. Friend agree that while it is easy to debate who is getting it right and who is getting it wrong, fundamentally, we require a systemic shift in how we look at the problem, which is generational and intergenerational? Everything that she is outlining shows that we are taking a systemic view, to get to the cause of these problems, so that we can finally move forward for the generations that have been let down. We did not have that approach from the previous Government.

[Dame Diana Johnson]

Those are very wise words from my hon. Friend.

I want to say something about employers, because they have a vital role to play in all this. On keeping people in work when they develop an illness or a disability, we are really pleased that we are working with over 100 Vanguard employers to take forward the recommendations in Sir Charlie Mayfield’s “Keep Britain Working” review, and helping to create a picture of what best practice looks like when it comes to building healthy and inclusive workplaces. We have had an outstanding response from businesses, because they know that when their workers win, they win too. Contrary to what some people say and believe, the interests of employees and employers are not diametrically opposed. Everybody wins when workers are secure, happy and healthy.

That leads me on to the Employment Rights Act 2025, which includes reforms such as the extension of statutory sick pay, so that more people can take the time they need to recover, instead of risking longer-term absences. That is not just good for workers; it is good for businesses, too.

I want to address the issue of national insurance contributions and business rates. Let us be clear: employers generally do not have to pay any employer national insurance contributions for employees under the age of 21 or for apprentices under 25. Yesterday we announced that every pub and live music venue will get 15% off its new business rates bill. That is on top of the support announced at the Budget. Bills will then be frozen, in real terms, for a further two years. This Government will always support businesses, giving them the stability that they need to grow, and to create good jobs.

Before I finish, there is one other thing I want to talk about. What happens at the start of people’s working lives can have many consequences for their future, and the same is true of what happens in our childhood. When a young person ends up out of work or training, it is no use pretending that that has suddenly come about in a bubble. Someone who grows up poor is less likely to do well at school and more likely to be a NEET. Poverty, low attainment and low aspiration can not only waste the potential of a young life, but cascade on to the next generation. Shockingly, the number of children in poverty increased by over 900,000 under the Conservatives, which is shameful, and they now come to this House to ask why a generation is struggling.

We are very proud to be lifting the two-child limit. That will have benefits for hundreds of thousands of children, who will be less likely to experience mental health issues, less likely to be unemployed, and more likely to be in work and earning more, yet the Conservatives oppose it. As ever, they seem determined to pull the rug out from under the next generation, and does that not sum them up? They blame; we support. They complain; we fix. They cut; we build.

We will never forget the neglect that left our young people without the hope and opportunity that every generation deserves, but this Government are doing things differently. We are laying the foundations for young people to succeed, and giving them the opportunities that they need and the skills and support to seize them. These opportunities are of course accompanied by obligations to take them up, but that is so much better than a life that is just written off. We are breaking down barriers to opportunity, so that every young person, in every part of our United Kingdom, can fulfil their potential.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.