Youth Unemployment

Wendy Chamberlain Excerpts

Wednesday 28th January 2026 Commons Chamber

[Sarah Olney]

My hon. Friend is absolutely right. There are groups of young people who are facing specific barriers to entering employment, and we need to do all we can to provide them with sustained support to get into and stay in the workplace.

Much of the UK’s current workforce challenges are due to the mistakes made by the current Government, with perhaps no bigger own goal than the surprise increase in employer national insurance contributions in the Chancellor’s first Budget. Almost every business that I, and I am sure many other Members, speak to tells me that the NICs rise blindsided it and has since seriously damaged its cash flow and ability to hire and retain staff. That policy alone has been so damaging to the business sector and has created an environment in which companies are discouraged from hiring young people.

Recent Government decisions include the devastating business rates hike in the Chancellor’s most recent Budget. This is causing huge damage to hospitality firms, with many now considering whether their business remains viable. Our hospitality businesses, which so frequently provide young people with their first jobs, are now on their knees. They need support from the Government. The Government’s statement yesterday on cutting business rates for pubs was a good first step, but we need wholesale reform of our business rates system. That is one more reason why the business community felt so betrayed by the previous Conservative Government, who promised reform but did nothing to help our struggling businesses.

[Wendy Chamberlain (North East Fife) (LD)]

My hon. Friend is highlighting two important things. The increases in on-costs for businesses mean that they are not taking on young people. More importantly, they are not then able to support the supervisory roles that give those young people the development they need, because they cannot make the differentiation in terms of salary. I am standing here as a Scottish MP. The Scottish Government did not pass on the business rate relief the last time. They have confirmed that they will do so for Barnett consequentials, but does she agree that the Scottish Government are simply not doing enough in this area and that, in fact, we are in a worse position than what is being debated today?

[Sarah Olney]

I am grateful to my hon. Friend for her intervention. She speaks very passionately about businesses in Scotland and the situation they are facing. I am sure she is correct to say that it is even more challenging in Scotland.

I am concerned that the Government’s sole focus on pubs and live music venues ignores the other retail, hospitality and leisure sectors which also need support. I therefore urge the Government to adopt Liberal Democrat proposals to cut the rate of VAT on hospitality, accommodation and attractions to 15% until April 2027, which would give our businesses the boost they so desperately need. Our high streets and town centres are in need of urgent help, and I urge the Government to act with all swiftness.

With the hospitality sector struggling to employ new workers, damage is being done to the prospects of our young people who are struggling with unemployment levels, and that will be detrimental to the broader economy. At the heart of this debate is that regular people are finding it incredibly difficult to find a job to support themselves, their partners, their children and their families, and to pay rent, pay for groceries and pay for essentials. That is what must not get lost in this debate.

While the Government seem to be weighing up their options on the EU re-set, they should be reminded that negotiating a new UK-EU customs union is the single biggest step that the UK could take to boost our economy, our businesses and our young people’s job prospects. The appalling agreement negotiated by the Conservative party has been a complete disaster for our country, particularly for small businesses who are held back by reams of red tape and new barriers to trade. So many young people I talk to are simply frustrated that they are the first generation who have to start their career while reaping the consequences of the Conservatives’ botched deal.

It seems evident from the Liberal Democrat Benches that the Government know that the UK must rectify the dismal trade deal negotiated by the Conservatives, and I am yet to hear a compelling reason from the Government as to why Ministers keep refusing to negotiate a new customs agreement with Europe. The steps the Government are taking to rebuild our relationship with the EU are welcomed by the Liberal Democrats, but I urge the Government to be bolder. This House voted in favour of joining a bespoke UK-EU customs union just last month. I urge the Government to seize that momentum, reach out to our European allies and negotiate a deal that would be mutually beneficial, creating countless new jobs for our young people here in the UK.

The Government cannot ignore the difficulties facing our young people anymore. Our young people need to be provided with a pathway for success and fewer barriers to getting on to the career ladder, but I am afraid the Government are failing to facilitate that. I urge Ministers to listen and adopt a joined-up strategy to tackle youth unemployment, invest in young people’s skills, boost apprenticeships and work-based training, and support businesses to create quality jobs.

--- Later in debate ---

[Naushabah Khan]

I will not give way at this point.

We are now left to rebuild what should never have been dismantled. It is promising to see that that is exactly what this Labour Government are doing. I welcome our youth guarantee that will create 350,000 new training and workplace opportunities, supported by 360 youth hubs across the country, and the investment of £750 million in apprenticeships that will equip 50,000 more young people with skills for the future.

We also recognise that the traditional path that allowed me to succeed—going to university—is not necessarily the right path for everyone. With a growing skills shortage, particularly in sectors such as house building that we need for building the infrastructure of the future, it is vital that we go further in encouraging young people to use their talents and feel confident that such career paths are valued and given the respect they deserve. I have made many visits to MidKent College—which serves my constituency—where young people are learning trades and are really passionate about what they do. They have skills in bricklaying, carpentry, welding, hairdressing and woodwork. Those are skills that my university degree could never have given me, and we must ensure that these avenues are fully supported so that young people can contribute meaningfully to our country’s future.

[Wendy Chamberlain]

The hon. Member is talking about further and vocational education, which is important. Another aspect of it is that it helps young people for whom school has not been a success. It is not just about the skills that they learn; it is about that arm that is put around them. Does she share my concern at the rural agricultural college in Cupar in my constituency of North East Fife effectively mothballing its building and moving a number of its courses online, meaning that young people studying animal care for, for example, are missing out on those arm-supporting opportunities that they desperately need?

[Naushabah Khan]

I completely agree that those routes offer young people an alternative. They offer them a space where they have an opportunity to thrive in a way they might not have been able to thrive in a traditional academic setting. I recognise the need for us to ensure that all those opportunities are protected in whichever way possible, and I recognise the work that the hon. Member is doing in her constituency to promote that.

I know that many of my young constituents in Gillingham and Rainham will welcome this Government’s approach. Jack, a 19-year-old constituent of mine, wrote to me to say:

“I am trying hard to build a future for myself, but without anyone giving me a chance it feels impossible to get started. I want to work, to contribute and become independent, but at the moment, I feel stuck and unsupported.”

My heart broke when I read that. I know that we have a lot of work to do as a Government to get this right, but Conservative Members should recognise their part in creating a legacy that has left thousands of young people living with despair or hopelessness.

We cannot have a generation stuck in limbo, truly struggling not because of their lack of talent or drive, but because the system has been deliberately dismantled. When I was 19, and living a few streets away from where Jack lives today, my future did not feel to me as his does to him. We must recreate a sense of hope and opportunity in this country. I am glad that, through my office and the actions of this Government, we may be able to give Jack the help that he needs, but is a moral stain on our country that we have allowed young people to reach the point of putting those words to paper because that feels like a reality to them. I hope that we get to the heart of this issue. I will back the Government in what they are doing to tackle youth unemployment as a matter of urgency.