Robbie Moore
Main Page: Robbie Moore (Conservative - Keighley and Ilkley)Department Debates - View all Robbie Moore's debates with the HM Treasury
Financial Inclusion: Young People
Robbie Moore Excerpts(1 month ago)
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Robbie Moore (Keighley and Ilkley) (Con)
It is a pleasure to serve under your chairmanship, Sir John. I commend the hon. Member for Hertford and Stortford (Josh Dean) for securing this important debate, and congratulate him on his speech—I thought he made some excellent points. Many young people are entering adulthood without the knowledge, confidence and access to the financial services that they need to build secure futures. Some 70% of adults believe that better financial education in their younger years would have improved their ability to manage their finances, and two thirds of young people believe that the lack of financial education has played a role in their amassing the debts they hold.
I wish to talk through a few issues that have been raised with me, particularly regarding access to apprenticeships and the challenges that those in our rural economy face with increased costs. I recently visited Keighley college in my constituency, where I met the principal Kevin O’Hare. Kevin highlighted to me a key issue that is putting young people undertaking apprenticeships at a financial disadvantage compared with those who decide to stay in full-time education, if they are from financially deprived backgrounds.
Currently, young people who remain in full-time education after the age of 16 continue to be treated as dependent children for the purpose of a range of household benefits. In contrast, young people who enter an apprenticeship are generally treated as employees, which can lead to a loss of income-related support linked to household benefits. For some low-income families, the resulting loss of benefits can exceed the apprentice’s initial earnings, meaning that a household might be financially worse off when a young person chooses an apprenticeship, compared with had they remained in full-time education.
I am keen to understand what conversations the Minister is having with the Department for Work and Pensions and the Department for Education on that classification, because that appears to run counter to the Government’s objective of promoting apprenticeships as a prestigious pathway that is equal to academic study. It may disproportionately affect participation among young people from disadvantaged communities. I have seen that in the casework coming into my office. What assessment have the Government made of the impact of household benefit losses on participation in apprenticeships among 16 to 18-year-olds? If the Minister cannot answer that in her speech, I would be grateful if she would write to me.
The second issue that I want to raise follows a meeting that I had this weekend with Silsden and Skipton young farmers club, whose members were keen to raise the cost of car insurance. Young people in rural areas face a crisis of skyrocketing insurance premiums, which makes it difficult for them to get around. Limited public transport makes owning a car essential, but they face huge costs. They cannot take up job opportunities and education if they are priced out of the market.
The hon. Member for Hertford and Stortford spoke about the mental health implications when young people feel the strain of debt, whether from going through education or simply because of the cost of living in rural areas. The key underlying point is the Government’s failure to grow new opportunities for young people. Unemployment has risen to 5% and youth unemployment has risen to 16.2%. In January to March 2026, an additional 110,000 young people aged 16 to 24 were unemployed than in the same period in 2025. Young people at Keighley college who wish to pursue opportunities through apprenticeships face being worse off. That is further exacerbated by the rise in employers’ national insurance and the minimum wage, and the Employment Rights Act 2025, which has created challenges.
Fiscal inclusion is about education and, crucially, about fostering an economy that rewards hard-working and ambitious young people, rather than punishing them. I would be grateful for the Minister’s thoughts on those points.
Several hon. Members rose—
The Economic Secretary to the Treasury (Rachel Blake)
It is a pleasure to serve under your chairmanship, Sir John. I am grateful that my first chance to speak as the Minister in Westminster Hall is in such a thorough and rich debate on this topic. Let me join in with the tradition of talking about our first job by saying that I spent many a happy afternoon doing a Saturday job on the high street in a sadly now-closed women’s retailer. I am very proud that jobs like that still exist: it gave me a thorough and deep understanding of the importance of the high street.
It would be impossible to cover or respond to all of the rich and broad points that have been raised this afternoon. I also want to give my hon. Friend the Member for Hertford and Stortford (Josh Dean) a chance to respond; I thank him for securing this debate and for all his work to focus the Government and colleagues on young people and the particular challenges that they face.
We have had a really broad range of contributions, including from the hon. Members for West Dorset (Edward Morello) and for Keighley and Ilkley (Robbie Moore) and from my hon. Friends the Members for Ilford South (Jas Athwal), for North West Leicestershire (Amanda Hack), for York Outer (Mr Charters) and for Kettering (Rosie Wrighting). It has been a powerful debate. We can all agree on the importance of ensuring that everyone across the UK has access to affordable financial products and services to enable them to engage in the economy. In responding, I want to talk briefly about youth employment and support for mental health, and then try to get through the questions put to me by my hon. Friend the Member for Hertford and Stortford.
Following the Milburn report and the contributions made today, we have to be clear that the Government are in no way complacent about youth unemployment. We are absolutely determined to unlock the potential of young people across the UK. Funding for employment support is increasing to more than £3.75 billion per year by 2028-29. At the last Budget, the Government committed to more than £1.5 billion to back young people through the youth guarantee and invest additional funding in the growth and skills levy.
This afternoon, we have heard interesting suggestions as to how that work can be undertaken, whether it is in youth hubs or in other youth settings. It is the responsibility of us all to consider how that investment can be made most effective, with industry working with the Government to provide jobs guarantees for a wide range of people and ensure that there are youth jobs grants under which businesses receive £3,000 for every young person they hire between the ages of 18 and 24. This is a partnership approach between industry and Government, and one that I believe will make a real difference.
I also want to talk about the significant issue of mental health and its prevalence in society, particularly among young people. Today, we are talking specifically about its interaction with financial inclusion. The strategy recognises that mental health can significantly affect people’s ability to access and use financial services, along with the interrelationship between people’s mental health and their attitudes and ability to work with particular financial products. It is therefore important that we strengthen the support available for individuals through interventions to improve debt collection practices, expand the breathing space scheme to support individuals in problem debt during a mental health crisis, and examine how pre-existing mental health conditions are treated in the travel insurance market. Each of those approaches is very much under way.
Robbie Moore
I welcome the Minister to her place. On the issue of mental health, many young people in my constituency raise the challenge of getting into work. With youth unemployment now at record levels, does she realise that one of the best ways of tackling mental health issues is to enable people to get into the job market in the first place, so that they do not have the additional pressure and anxiety of not being able to earn funds? Does she not recognise that things like employer national insurance, the Employment Rights Act 2025 and minimum wage increases have exacerbated the unemployment figures? Will she work with industry to address the concerns that are being raised with me and, I am sure, with her in her new role?
Rachel Blake
As the hon. Member will expect, I disagree with his characterisation of employer NI and the Employment Rights Act. I remind him of the positive impact that both those measures are having on workers, our NHS and the services that they are funding, and of the specific ways in which they operate with young people. His evidence base therefore does not entirely stack up.
I turn to the issue of building up a credit record. The Government are continuing to engage with the FCA on its work with industry to tackle thin credit files. As part of that, the FCA has recently consulted on introducing mandatory credit information sharing by regulated firms, which would mean that any firm reporting to one designated credit reference agency must report the same information to all such agencies, ensuring full and consistent information on a consumer’s file.
To give my hon. Friend the Member for Hertford and Stortford a chance to respond, I will rattle through actions on insurance. The Government recognise the important role of insurance in supporting individuals’ financial resilience. There are pilots among social renters, led by Fair4All Finance, and the Government also recognise that affordability is a key issue.
We have had quite a thorough discussion about scam ads. The Online Safety Act 2023 places duties on the largest social media platforms to tackle fraudulent adverts. Ofcom is due to consult on those measures later this year, and once they are implemented it will be able to impose fines of up to £80 million or 10% of qualifying revenue, whichever is greater.
I certainly want to hear from my hon. Friend the Member for Hertford and Stortford. There is much more to cover, and I commit to doing so in writing. I am grateful to my hon. Friend for securing the debate, and will be happy to continue the conversation.