Youth Unemployment

Debate between Graham Stuart and Harriett Baldwin

Wednesday 28th January 2026 Commons Chamber

[Dame Harriett Baldwin (West Worcestershire) (Con)]

This has been an excellent and engaging debate, in which I think everyone has recognised that this is an important issue to which we should be dedicating time. Indeed, it is a crisis, because youth unemployment is rising faster here in the UK than anywhere else in the G7.

We have had some fantastic contributions from those on the Conservative Benches. My right hon. Friend the Member for East Hampshire (Damian Hinds), a former employment Minister, spoke in an extremely well-informed way. He also incorporated some very practical things into a call to action. We had a passionate speech from my hon. Friend the Member for Beaconsfield (Joy Morrissey), who talked specifically about The Greyhound as an exemplary business in her constituency. My hon. Friend the Member for Bromsgrove (Bradley Thomas) made a very apposite comment: that the best welfare programme for young people is a job. In an outstanding speech, my hon. Friend the Member for Leicester East (Shivani Raja) shared her deep experience of working in a family business and the importance of those jobs in our retail and hospitality sector to teaching young people reliability, communication and resilience.

[Graham Stuart]

My hon. Friend is picking out remarkable contributions to this debate. Was she particularly struck by the hon. Member for North Norfolk (Steff Aquarone), who is not in his seat, saying that the Conservatives should apologise for not having any mention in their motion of transport to help young people get to work, when the much longer Liberal Democrat amendment, ironically, has no mention of transport either?

[Dame Harriett Baldwin]

My right hon. Friend makes an excellent point.

My right hon. Friend the Member for Herne Bay and Sandwich (Sir Roger Gale) spoke extremely eloquently about the importance of the Dog and Duck in his constituency and about how terrible it is for the local community that it has closed because of all the extra costs. My right hon. Friend the Member for Beverley and Holderness (Graham Stuart) was absolutely on the mark about some of the statistics and the fact that we have seen this film before. We have learned about the importance of the ladder of opportunity that is built by good intentions. We need to create those jobs in the private sector; we cannot regulate our way to prosperity. My hon. Friend the Member for Broxbourne (Lewis Cocking), in a speech that was very practical and befits his background in both the private sector and local government, had some very sensible points to make.

--- Later in debate ---

[Dame Harriett Baldwin]

As we have seen so often in this debate, that is a tragedy. Every young person deserves the chance to move into the world of work. What we are seeing from those statistics is that this is not a blip, but a trend—and a trend that is moving in the wrong direction.

[Graham Stuart]

Does my hon. Friend look forward to the Minister’s reply, as I do? Youth unemployment has already gone up from 14% to 16%. Does she want to hear from the Minister at the Dispatch Box a commitment that this Government will reduce it back down, so that they can for once end their time in power—in 2029—however short-lived it may have been, with a lower rate of youth unemployment than they started with?

[Dame Harriett Baldwin]

I certainly hope that we will hear a plan of action to tackle this alarming crisis, and a less selective grouping of statistics than we heard from the Minister of State, Department for Work and Pensions, the right hon. Member for Kingston upon Hull North and Cottingham (Dame Diana Johnson) when she opened the debate.

This Government have made it more expensive, burdensome and risky for businesses to hire young people. That is not a view that I am expressing from a partisan point of view—[Interruption.] I will try to follow the example of the hon. Member for Harlow (Chris Vince) and not be partisan, by quoting from external organisations. The Federation of Small Businesses warns that many firms are now scaling back recruitment, with young workers the most exposed. The highly respected and neutral Institute for Fiscal Studies has warned of a worrying rise in unemployment among young workers, citing policy-driven increases in labour costs. The National Institute of Economic and Social Research has highlighted a cooling labour market with disproportionate effects on young people.

How in their first 18 months have the Government managed to have such a terrible impact on our young people? First, there is the national insurance rise. The Institute of Directors has described the national insurance rise as a direct disincentive to hiring. Young people are the least experienced, the least established and the most vulnerable to cost cutting, and when it is made more expensive to hire, employers hire fewer people. It is not complicated.

Secondly, we have Labour’s increase in the minimum wage. Since the 2024 general election, the cost of hiring a full-time minimum wage worker has risen sharply across every age group. For over-21s, the annual cost has increased by 15%, but for 18 to 20-year-olds, it has jumped by 26%, despite the fact that there is no employer national insurance to pay for that age group. For apprentices, it has risen by 25%. In fact, since Labour got into government, it now costs £4,000 more a year to hire an 18-year-old full time.

Steel Industry (Special Measures) Bill

Debate between Graham Stuart and Harriett Baldwin

2nd reading
Saturday 12th April 2025 Commons Chamber

[Dame Harriett Baldwin (West Worcestershire) (Con)]

I add my thanks to everyone who has enabled us to be here this afternoon, but the fact is that this is a bungled way to do parliamentary legislation, following a bungled set of negotiations, and we are likely to end up with a bungled nationalisation. The Labour Government have landed themselves in a steel crisis entirely of their own making. They have made poor decisions and let the unions dictate their actions. The fact is that the union-led Labour Government have bungled the whole negotiation, insisting on a Scunthorpe-only deal that is not viable.

Frankly, the Government should have seen this coming. In fact, instead of addressing it 16 days ago, when British Steel announced its plans to close the site and Parliament was sitting, their incompetence has led to this last-minute emergency recall. Colleagues including my hon. Friend the Member for Brigg and Immingham (Martin Vickers), the Tees Valley Mayor Ben Houchen and Councillor Rob Waltham of North Lincolnshire Council have been warning about the issues at British Steel. But no: Labour Ministers thought they knew better. The British public can now see the Government scrambling for a solution to a problem they created and could have resolved months ago.

[Graham Stuart]

The Government give themselves powers in the Bill to compensate steel undertakings, yet the Minister has told us nothing about the scale of that or the estimate of it. The Secretary of State tells the House that he has no trust or abiding faith in the company, but he is giving himself powers to give whatever sums he deems appropriate to the company. Do we not need more answers before we pass this legislation?

[Dame Harriett Baldwin]

I wholeheartedly endorse what my right hon. Friend said. All new Government Members should be aware that the explanatory notes to the Bill, which have only just been circulated to colleagues, make it very clear—[Interruption.] I hear cries of “Shame!” from behind me. On the financial implications of the Bill, the explanatory notes say that there has been no impact assessment of the effect on the country’s finances, and nothing has been prepared for this House while we make this decision today.

The Bill is a sticking plaster for a Government who, in opposition, had years to come up with a plan, but they have dithered and delayed. Ultimately, nothing will change for UK steel until the Government understand the damage that unrealistic and impossible “net zero by 2050” targets have done to British business and industry.

We have heard a range of really excellent contributions from my hon. Friends. From the Father of the House, we heard an excellent exposition of the importance of this industry to his constituents in Lincolnshire and the impact of energy costs on the industry. We heard from the great champion of the industry, my hon. Friend the Member for Brigg and Immingham, who has regularly brought this issue to the forefront of Members’ consideration. We heard from my right hon. Friend the Member for Goole and Pocklington (David Davis), and from my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith), who raised incredibly important issues to do with tariffs and China. We then heard from my right hon. and learned Friend the Member for Kenilworth and Southam (Sir Jeremy Wright), who raised some important legal questions.

If I may in the time available to me, I would like to raise a few further detailed questions for the Minister to respond to when she gets to the Dispatch Box. The Secretary of State has said that he does not want these powers indefinitely, so why will Labour Members not back our amendment to implement a sunset clause for this Bill?

We have heard from a range of voices in the debate about the confusion over the territorial extent of this legislation. It makes it very clear that the territorial extent applies to England and Wales only, yet clause 2 refers clearly just to England. There is another thing I would like the Minister to make clear at the Dispatch Box: if a new provider came into the UK and decided to set up a new steel-making enterprise in England or Wales, would that new enterprise be covered by this legislation?

Can the Minister also tell the House what the Attorney General has advised on compliance with international law, including article 1 of protocol 1 to the European convention on human rights, the World Trade Organisation subsidies agreement, and the trade and co-operation agreement, particularly with reference to state aid?

The Secretary of State was unable to tell the House this morning how much this intervention will cost. We are being asked this afternoon to sign off on a bottomless pit of money. How often will this House be given an update on how much taxpayer money is being sent into this bottomless pit? Families across the country are already being hit in the pocket every day. Can the Minister give the House a ballpark figure from the Dispatch Box? Are we talking about £100 million a year? Are we talking about a billion? Are we talking about more than a billion?

It is a fact that the Government themselves have made the situation worse for the steel industry with their determination to impose higher energy prices, higher taxes and higher business rates. Where is the steel strategy that they have had nine months to develop? What we can say with certainty about today’s legislation is that this is no way to govern the country. Whenever Labour negotiates, Britain loses. We can see for ourselves that this is a Government controlled by events; they are not in control of events. Yet, according to the Secretary of State, it is everyone else’s problem and nothing to do with them. This Government have treated Parliament with disdain. We have had nine months of dither and delay for these workers at Scunthorpe. When Labour negotiates, Britain loses. I look forward to hearing the answers to all those questions from the Minister.