Youth Unemployment

Debate between Harriett Baldwin and Scott Arthur

Wednesday 28th January 2026 Commons Chamber

[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.

[Dr Arthur]

rose—

[Dame Harriett Baldwin]

I give way to a Member from the governing party.

[Dr Arthur]

I am very proud to be a Member from the governing party. I am sure the hon. Lady would not tell those young people in our constituencies that they do not deserve that pay rise, particularly when it is about ensuring that two people, doing the same job side by side to the same standard, get the same pay irrespective of their age. Surely that is a good thing.

[Dame Harriett Baldwin]

I am sad to see that the hon. Gentleman does not recognise that that young person will now be standing next to another young person who is unable to get a job. Surely he must agree that the level at which people are being paid has had an effect on the fact that there are fewer people in these jobs.

Call for General Election

Debate between Harriett Baldwin and Scott Arthur

Monday 12th January 2026 Westminster Hall

[Dr Arthur]

The hon. Member knows that that is not the intention of the Government. He is welcome to visit my constituency, where I can help him meet lots of people who already support those with additional needs into work. They are doing fantastic work. I am sure that whatever the Government do will build on that success.

I am proud that the Government have learned from Edinburgh and introduced a pavement parking ban last week that will give councils across England the powers to introduce one. Again, that is a great step in creating a more equal UK. I am also really happy with the road safety strategy, which will save thousands of lives.

In Scotland, as we have already heard, we have had our biggest ever settlement. It is still a bit of a mystery to me how the Scottish Government spent that money. One of the biggest challenges we face in Edinburgh South West—this will have been part of the frustration that led people to sign the petition—is the housing crisis. I was really disappointed that last week the Scottish Government voted to tax house building in the middle of a housing emergency. That is the kind of Government we face in Scotland. We could talk about the UK Government, but people should look at the Scottish Government before doing so.

And I am really proud of what my office has done in the past year. It has resolved 8,000 cases and accumulated £303,000 of financial gain for constituents, mostly due to my colleague Lucie in my office. We also had a big impact on the Budget. Our lobbying brought about changes to inheritance tax and infected blood payments, and also brought reform to the Pension Protection Fund, ensuring that there was some indexation of the payments.

However, cutting across everything that happens in my constituency, there is still the cost of living crisis. There is also the growing youth employment that we have, particularly in Scotland—a point raised repeatedly by the hon. Member for Berwickshire, Roxburgh and Selkirk. Immigration is also a real issue. People feel that the previous Government lost control of immigration—I think we can accept that—and that the current Government must do more to bring it back under control. I say that as someone whose life was saved by an immigrant back in 2015, and who also worked at a university. So I understand the benefits of immigration, but we have to get it to a place where it is supporting the country as a whole, and I think there are some questions about that.

To conclude, we have used the word “betrayal” quite a lot in the debate, and I really regret that, because it has often been used to deliberately amplify division in the country and among people listening to the debate. As a Parliament, we have a duty to talk much more about where we agree. I am sure we agree with the point raised earlier about improving employment rights for pregnant women, women returning from childbirth and women who have had miscarriages. I hope that, for the remainder of this Parliament, we can spend more time talking about what we have in common and engaging with the electorate on that. Then, we will perhaps be able to focus on delivery rather than petitions.

[Dame Harriett Baldwin]

On a point of order, Dr Huq. Could you clarify whether it is in order for so many Government speakers in the debate to have left the Chamber before the Front-Bench speeches to listen to their beleaguered Prime Minister at the parliamentary Labour party meeting?