Oral Answers to Questions

Debate between Sarah Olney and Kate Dearden

Thursday 29th January 2026 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

The heavy burden of Labour’s national insurance contributions rise, compounded by high energy costs and the business rates increase, has raised alarm about the affordability of hospitality businesses’ monthly employment costs. Some 84,000 jobs in the hospitality sector alone have been lost since the NICs rise was introduced, and that is particularly damaging to young people, many of whom have traditionally found their first jobs in the hospitality sector, including the Minister, as she just said at the Dispatch Box. With the sector struggling to employ new workers, damage is being done to the career prospects of our young people, and it will be detrimental to the broader economy in the long term. Business confidence is down, job vacancies are down and unemployment is up, so what steps will the Department take to tackle high unemployment costs, support businesses and bring down those increasingly high levels of unemployment?

[Kate Dearden]

A decade of stagnant growth and living standards will not be turned around in 18 months, but there are signs of progress. The Conservatives left one in eight young people out of education, employment and training, and we are working relentlessly to turn around that disgraceful figure. We recognise the challenges that businesses have to work through as a result of the actions undertaken by the previous Government. On youth unemployment, we have announced an £828 million funding package to give a generation of young people a brighter future. Over the next three years, 1 million young people on universal credit across the country will benefit from support designed to get them into employment and learning, and that includes what we are doing with small businesses on apprenticeships, which we are partly funding. That will be significant, especially for the hospitality sector, in encouraging more jobs. Those jobs are a key lifeline for people to get into the employment market. That is something I recognise, as the hon. Lady noted. We know the importance of this issue, and we want to work closely with the sector and with councils in the significant wider work we are doing on the strategy.

Employment Rights Bill

Debate between Sarah Olney and Kate Dearden

Consideration of Lords message
Monday 8th December 2025 Commons Chamber

[Sarah Olney]

I would agree, but my point is that this last-minute change has been sprung on us and the business groups that engaged in good faith with the Government on these measures. This is a last-minute change that we and the business groups were not expecting, and that is why we will not be supporting it.

[Kate Dearden]

With respect, I was in the room as part of the negotiations with business representatives and trade unions, and I thank them again for the constructive dialogue and leadership that they showed throughout the numerous days of conversation. I can confirm that the compensation cap was discussed and agreed in the room, so I ask the Liberal Democrat spokesperson to reflect on her comments. I was in the room; with due respect, she was not. That is a true reflection of what was discussed and agreed.

[Sarah Olney]

I take the Minister’s comments. What I would say is that we were not expecting to see this measure in the motion, and that is why we will not support it.

Turning to zero-hours contracts, Liberal Democrats strongly believe in giving all workers security over their working patterns, and we are deeply concerned that too many struggle with unstable incomes, job insecurity and difficulties in planning for the future. However, we have repeatedly reminded the Government that adaptability in shift patterns is often hugely valuable, for example to those balancing caring responsibilities or their studies alongside work. It is therefore important to strike a balance that ensures workers can have both security and flexibility.

Since the Bill’s introduction, many small businesses have highlighted that having to offer employees fixed-hours contracts on a rolling basis could impose significant costs and administrative burdens on their limited resources, compounding other challenges, such as the increase in employer national insurance contributions, charging national insurance on salary sacrifice schemes and the fallout from the previous Government’s damaging Brexit deal. While we advocated for what we think would have been a fairer and less onerous system based on giving workers a right to request fixed hours, the Liberal Democrats are pleased that the Government have at least moved in the right direction through amendment (b). Requiring the Secretary of State to consult businesses and relevant stakeholders on the length of the initial guaranteed hours reference period will at least give affected businesses and workers a stronger voice in designing the new system.