Summer Jobs

Jayne Kirkham Excerpts

Tuesday 7th July 2026 Commons Chamber

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

The King’s Speech mentioned that mayors might have that power, but that foundation strategic authorities might also have it. Obviously, the approach has not been decided yet, but is that still the case?

[Chris Bryant]

Yes. I am very glad that my hon. Friend picked me up on that—that is a very good point.

I want to make another point about the levy, which is that some people seem to be suggesting that all of this is going to start in a couple of weeks’ time. Far from it; this levy is far from imminent. We are consulting on it, and that process will take some time—I doubt we will have anything in place in the next 12 months. I very much encourage people to take part in the consultation so that we can decide how to move forward. Of course, any mayor or strategic authority will want to consider all the issues in the round and whether a net benefit can be gained from introducing such a levy, notwithstanding the additional pressures that there might be on costs in the tourism and hospitality sector.

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[Damian Hinds]

Of course the hon. Member is right. Nobody wants exploitative zero-hours contracts. Quite often when the Opposition talk about zero-hours contracts, the Government think that the work exploitative automatically gets inserted into the phrase. That is why we stopped exclusivity clauses in zero-hours contracts way back when we were in government. Nobody should be exploited, but that does not mean that there cannot be a job that works for the employer and employee and gives flexibility in the economy.

[Jayne Kirkham]

The right hon. Gentleman is being generous. Of course there are zero-hours contracts that work for some people and not for others. For example, if it is the choice of the employee, then it is fair enough, but if someone’s work is cancelled when they are on their way in, that is not fair. The 2025 Act still allows people who are employed to say, “No, I do not want those average hours. I am happy to work on a zero-hours contract.” That optionality is still there.

[Damian Hinds]

Good employers, who want to keep their employees, do not do stupid things that upset their employees. Good employers will always want to keep good people in order to build their business.

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[Damian Hinds]

Well, I will help him with that. That principle is why, back in 1999—under a Labour Government, as he will recall—when the original minimum wage came in, the Low Pay Commission specified that there should be a different rate for young people. That was for two reasons. The first reason was because of the work experience effect: there is a difference in how employers view people with a few years’ work experience and others without that experience, and if those rates were exactly the same, youth unemployment would inevitably rise. The second reason was to recognise that very many of those younger workers are in some form of education or training at the same time. We all want people to be properly rewarded for the work they do. The best thing is to be well rewarded in a job, but the worst thing of all is not to have a hope of getting into a job that is well rewarded.

We have talked a bit about the national living wage. Of course, we all want the national living wage to keep going up. That is why we brought it in, by the way, in 2015, with the explicit intention that it would keep rising until it was further up the income distribution. However, we do have to acknowledge the reality. As I say, I think that most people present know that there is a difference by age and that it is there for a reason.

[Jayne Kirkham]

It is still the case that there is that differential, is it not? There is still about a £2 difference between under-21s and over-21s, so it is not actually having the impact that the right hon. Gentleman suggests it should. If there is still that differential, why is there that problem at the moment, when employers are not paying national insurance contributions for under-21s either? Considering that the differential still exists, why does the problem exist?

[Damian Hinds]

I genuinely do not know quite how to respond to that. The differential has come down. It is due to come down further—it is due to be eliminated. There will still be the difference in national insurance contributions. Nobody is at this time envisaging there being no difference in employment costs at all. The reason that I used a hypothetical case and established that principle was to demonstrate why there is a wage effect on youth unemployment.

I was going to talk about the overnight visitor levy, on which I have strong views—I think it will be bad for our local economies, bad for international inbound tourism and bad for places that rely on domestic tourism and seaside towns in particular—but in the interests of time, Madam Deputy Speaker, I will not.

I will just end by saying that I would have thought that the Labour party would like to break away from that cliché—the fact that every Labour Government ever to exist have left office with unemployment higher than when they came in. If I was a Labour Member, I would want to say, “With our enormous majority, and perhaps with the new Prime Minister we are about to have, this could be our chance to break away from that, so that nobody can ever say that to us again. We are, after all, Labour—we are supposed to be the party of work. Let us devote all our energies to maximising employment, and particularly to maximising the opportunities for young people coming into the labour market.” It is not too late for them to take that approach.

I just want to add something that we have not really talked about today—in fact, something we hardly ever talk about—in the context of these changes. We need to consider the number of people who will be forced into self-employment as a result of the changes in the Employment Rights Act. I strongly encourage the Government to change course.

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[Jonathan Davies]

I spent most of the hon. Gentleman’s intervention trying to find out what is going on in Clacton, but perhaps the Minister heard what he said and will furnish him with a response in his summing up.

The Government are doing a great many good things to support young people. There is more to do, but I will touch on some of the things we are doing. We have an unemployment rate of 4.9%. That is far too high, but we are outperforming many other major economies, including Canada and the EU. I particularly welcome the youth guarantee, the growth and skills levy and the other levers that we are introducing to reduce business costs, including on energy. We are expanding access to finance through the British Business Bank, and we are reducing red tape and licensing costs.

On summer jobs, it is particularly important to highlight our support for hospitality, including cutting business rates for pubs and live music venues by 15%, which will be followed by a two-year freeze. We are also increasing the hospitality support fund to £10 million, which will really help those sectors.

We have heard a little bit from the Opposition Benches today about wage increases and national insurance. On wage increases, when I go to food banks I often meet young people who are in work but tell me that they are still not making ends meet, and that point comes through from the survey that I did. That really is a tragedy. While I acknowledge the concerns that businesses have raised with me and that the Opposition have raised today, I do welcome the wage increases. We have to deal with this cost of living crisis. Young people should not be working as many hours as they can yet still not able to get by.

The point about national insurance is quite interesting. The decision to increase employer national insurance was a difficult one. I would rather we had not had to do make that decision, but we did. Public services were failing so badly that that in itself was a brake on the economy. I note that the previous Government also effectively tried to increase national insurance by 1.25% in 2021. That was called the health and social care levy, but they did row back on it.

The reality is that we have a long-term problem with public services, and it is holding back people’s lives and the economy. We have grasped the nettle on that, but I hope that sometime later in this Parliament we can revisit the issue. We stood by businesses in covid, and we are asking them to stand with us now as we rebuild public services. As the economy continues to grow, I hope that that option is on the table for the Government.

There are a few things that I would like the Minister to bear in mind going forward. I very much welcome the Great British summer savings scheme, which offers VAT cuts to the visitor economy sector, which is a very important employer of young people, including in Derbyshire. Once that scheme ends, I would be grateful if a review could be undertaken to see how much economic growth and how many jobs it generated. My long-term aspiration is for us to be in a place where we can offer a VAT cut, particularly for the hospitality sector.

After the financial crisis in 2008, the previous Labour Government cut VAT to 15%—it was subsequently put up to 20% when the Conservatives came in—and that was a real shot in the arm for the economy. If the Great British summer savings scheme shows evidence of being a real driver for economic growth, particularly in the important visitor economy sector that employs a lot of young people, we should see whether we can harness that and offer a different rate of VAT for the visitor economy and hospitality sectors. I believe that that would be good for the economy. It would also be good for our high streets and people’s sense of place and wellbeing.

[Jayne Kirkham]

That is the important thing. The summer savings scheme could be really useful. I think the onus is on all of us as Members of Parliament to get out and spread the message to businesses across our high streets that they should make the most of it so that we can see how well it works.