Opposition Day

I inform the House that I have selected the amendment in the name of the Prime Minister. I call the Opposition spokesperson to move the motion.

The hon. Member contends that government policies are choking off work opportunities for young people; over 1 million young people aged 16 to 24 are now not in education, employment or training. He emphasises the need for flexibility and criticises red tape created by new regulations such as Employment Rights Act 2025.

The hon. Member agrees with the debate's content, emphasising that business rates and energy costs prevent businesses from employing people for both Saturday jobs and student work.

My hon. Friend is incredulous of the Government’s proposed amendment to welcome Employment Rights Act 2025, suggesting it is burying their head in sand as there may be nothing left for youth to work at.

My hon. Friend agrees that the biggest tragedy is for those kids who go to university only to find they are no further forward; he suggests focusing on skills through further education rather than higher education.

The hon. Member disagrees with some conclusions but supports embedding skills earlier in young people’s education and the need for financial education and computer literacy within the curriculum.

The hon. Gentleman points out that many jobs are on offer but hard to take up due to lack of public transport and affordable housing, a structural problem in rural areas.

My hon. Friend agrees the correlation between effort and success is being depleted, eroding self-confidence and sapping economy of contribution as effort does not reap reward.

The hon. Member agrees that summer jobs are vital for young people and the viability of tourism and hospitality economies; they sustain coastal towns across Britain.

My hon. Friend argues Government does not understand business, squeezing businesses with taxes, legislation and red tape preventing job opportunities for working people and young people.

My hon. Friend shares concern that the right to guaranteed hours in Employment Rights Act will prevent many young people from getting their first job this summer due to potential redundancy during lean periods.

The UK economy is performing well, with GDP growth of 0.6% in Q1 2026 and inflation at 2.8%. Wage growth outpaced inflation by 3.4%, productivity increased by 0.9%, and unemployment fell slightly to 4.9%. Despite these positive indicators, the government remains aware of challenges such as youth employment issues across all constituencies, including the Isle of Wight. The Labour party supports summer jobs that provide young people with their first work experiences, enhancing social and personal development.

Asked if the Minister has any new ideas to get young people into work and questioned the impact of recent economic policies on youth unemployment. Pointed out that despite positive GDP growth, youth unemployment rose by 109,000 from the previous year.

Asked about the increase in youth unemployment and the lack of new jobs despite economic recovery. Highlighted the rise from 517,000 to 626,000 unemployed young people under the current government.

Expressed concerns that recent decisions on employment costs and business rates have depressed small businesses' appetite for hiring more employees. Suggested these policies have a chilling effect on youth employment despite the need for evidence-based strategic changes.

Questioned whether reducing national insurance payments has discouraged part-time employment, making it harder to offer starter jobs. Emphasised that such policies have a direct impact on youth employment opportunities.

Addressed the issue of business rates affecting unique businesses such as Brackley Antique Cellar, questioning whether the schemes and programmes for supporting businesses are merely short-term fixes. Also raised concerns about mayors' powers to implement changes suggested in the King’s Speech.

Critiqued the current economic landscape for businesses due to high energy bills, national insurance increases and business rates hikes. Emphasised the impact of previous Conservative government policies on sectors like hospitality and retail. Called for bold actions such as addressing workforce skills crisis, reversing the rise in national insurance contributions, and negotiating a new growth and defence partnership with the EU.

Expresses gratitude towards the official Opposition for the opportunity to discuss summer jobs. Emphasises the importance of minimum wage and secure work conditions, highlighting his personal experience working as a cleaner and at a local Co-op. Supports the Employment Rights Act 2025 and acknowledges the need for more investment in apprenticeships and vocational skills training. Criticises the Conservative party's motion for skirting issues related to business rates and national insurance hikes.

Intervenes by asking how old Alistair Strathern is, implying a lighthearted interaction regarding the age mentioned in his speech.

Agrees with previous speakers about the importance of summer jobs for young people but emphasises the need for long-term job opportunities. Supports reinvestment of money from the growth and skills levy into skills training and apprenticeships to provide good, long-term jobs.

As an accountant, Peter Bedford emphasises the negative impact of recent economic policies on youth unemployment, citing statistics such as a youth unemployment rate of 16.2%, up by 109,000 from last year, and over one million young people not in education, employment or training. He criticises the Employment Rights Act for adding costs and burdens to employers and hindering their ability to hire new employees, especially during peak seasons like summer. Bedford argues that these policies are detrimental to small and medium-sized enterprises (SMEs) and limit opportunities for young people's first jobs.

Intervenes in support of Peter Bedford, questioning the impact of rapid increases in national living wage on job availability for young people.

Responds to John Glen's intervention by discussing concerns about employees working 40 hours a week but earning insufficient wages, highlighting the need to address this issue to avoid state subsidies.

The speaker thanked the Opposition for bringing forward the debate and acknowledged that Labour Members should not shy away from discussing youth employment challenges. He pointed out that the number of young people not in education, employment or training rose sharply before the general election and continued to rise since then. The Government has introduced new incentives such as a £2,000 incentive for hiring aged 16-21 for foundation apprenticeships and NICs exemptions for employees under 21 and apprentices under 25. He argued that the challenges young people face are linked to the previous Labour government's economic policies. The Employment Rights Act was highlighted as vital for modernising protections, making work pay, and supporting a strong economy through worker rights and business flexibility. Mr Woodcock met businesses in his constituency and discussed issues related to the employment rights legislation, noting that the opposition had not clearly outlined which parts of the act they intended to repeal. He emphasised protecting employees from infectious diseases by reducing the SSP waiting period and acknowledged concerns raised by young people about AI, school system failings, mental health support, and employer costs.

Damian Hinds stressed that the decline in youth employment opportunities has accelerated due to economic downturns and increased costs and risks for employers. He provided his personal experience of working a zero-hours contract as a young adult, which taught him important life skills such as taking criticism and reliability. Hinds argued that while some employers abuse zero-hours contracts, others offer flexible hours that can be beneficial to employees.

Iain Duncan Smith agreed with Damian Hinds, pointing out that the previous Labour party leader overestimated the prevalence of zero-hours contracts. He argued that flexible hours are necessary in an economy and were widely appreciated by those who could manage their schedules without being forced to work when they were unable.

Various Members raised concerns about the potential exploitation of zero-hours contracts, with Sean Woodcock highlighting that such contracts can be abusive if employers insist on them without offering alternatives. Jayne Kirkham countered by noting that employees still have the option to refuse average hours and work under zero-hours contracts if they choose. Scott Arthur emphasised focusing on not-so-good employers rather than good ones.

The hon. Member highlighted the current unemployment rate of 4.9%, noting that while it is high, the UK outperforms other major economies like Canada and the EU. He welcomed initiatives such as the youth guarantee, growth and skills levy, and support for hospitality businesses through reduced business rates and increased funding. The survey results revealed a lack of optimism among young people about their futures, which he described as a moral and political tragedy.

Intervened to raise concerns about job applicants in Clacton not following through with the jobs they apply for. She suggested a work experience scheme where non-committal individuals could learn from young people who do vital jobs, possibly improving their work ethic and behavior.

Asked whether the £1 million fund to help unemployed young people was sufficient. He pointed out that at £1.50 per person, it would not make a substantial difference given the number of new unemployed individuals over the past year.

Emphasised the importance of spreading awareness about the summer savings scheme across high streets to maximize its benefits for young people and local businesses.

Discusses the challenges faced by young people in finding employment due to changes in national insurance, employment rights, minimum wage increases, and the decline of part-time jobs. Highlights the importance of work experience for future career prospects and criticises government policies that limit job opportunities for young people. Emphasises the impact of high business rates on small businesses' ability to hire staff.

Mr Reed argued that his constituency relies heavily on tourism and seasonal work. He highlighted the economic impact of large holiday parks in Devon, which support hundreds of jobs and local businesses but face significant tax burdens. These pressures include rising national insurance contributions, business rates, and energy costs, compounded by a 20% VAT rate for accommodation services. Mr Reed pointed out that over 100,000 jobs have been lost in the hospitality sector since the last budget due to these issues. He criticised the proposed holiday tax as it would further burden businesses with no clear benefit, potentially resulting in job cuts or price hikes. Additionally, he noted that new employment legislation and increased national living wages are deterring employers from hiring young people on flexible contracts such as zero-hours contracts. Mr Reed urged the government to scrap the proposed holiday tax, ease the pressure on hospitality sectors, and restore flexibility for seasonal employers.

Mohindra argues that seasonal jobs are crucial for young people, providing them with valuable first employment experiences and helping them build confidence and skills. He highlights how rising costs such as increased national insurance contributions, wage hikes, and complex regulations have forced businesses to make tough financial decisions, leading to fewer opportunities for young workers and a reduction in apprenticeships.

Ms Morton argued that summer jobs provide crucial experience and confidence to young workers, highlighting her own first job as an example. She noted the current high rates of youth unemployment and called for a reduction in burdens on small businesses to improve employment opportunities.

Discussed the challenges businesses face due to increased costs and regulatory burdens, such as anti-money laundering regulations costing £33.6 billion annually and bank ringfencing costing £1.5 billion annually. Criticised the Employment Rights Act 2025 for reducing labour flexibility. Emphasised that young people miss out on learning essential skills through first jobs.

The speaker thanked his colleague for an excellent speech and expressed significant concern over the current state of youth employment in the UK. He highlighted a disconnect between Government policy and its real-world impact, citing high business costs as a barrier to hiring young people. The speaker criticised specific government interventions such as business rates, national insurance increases, and the Employment Rights Act for deterring businesses from employing young individuals. He proposed repealing certain aspects of employment legislation that he views as detrimental to private enterprise. Emphasising the importance of youth employment in providing essential skills and opportunities, Bhatti shared a personal anecdote about successfully hiring and training an underprepared but eager teenager. He urged the Government to re-evaluate their policies to address rising unemployment rates among young people.

Lumsden discussed his own experience working a summer job as a postman and highlighted how it provided him with necessary financial resources. He criticised the current business environment in Aberdeen, noting high taxes imposed by both national and local governments which hinder new businesses from starting up or existing ones from expanding. Lumsden pointed out the lack of government support for industries that heavily rely on seasonal workers such as hospitality and tourism, stressing the need for flexibility to accommodate peak seasons like summer. He concluded by calling upon the Government to reconsider its policies and measures affecting young people's employment prospects.

He criticised Labour for increasing taxes by £62 billion in the last two Budgets, resulting in over £2,000 per household. He pointed out that 16.2% of young people are unemployed and emphasised that job losses were an inevitable consequence of Labour’s anti-business policies. Huddleston also supported a pro-business approach with lower taxes and less regulation, highlighting the potential benefits of business rates relief for 250,000 businesses.

McDougall emphasised the significance of first employment experiences and critiqued the defence of zero-hours contracts by Conservative Members, highlighting their impact on financial insecurity for young workers. He pointed out that only 3% rely on such contracts as their main job but noted that hundreds in constituencies still face income uncertainty.

Hinds defended the use of zero-hours contracts, arguing they provide necessary flexibility for students and others who need it. He challenged Labour's claims about their prevalence in the economy.

Smith argued that removing young people from summer jobs market would affect local economies and highlighted the closure of pubs during Conservative rule, impacting job opportunities.

Ryan welcomed students from Burnley's summer school and noted the impact on jobs due to pub closures in his area during Conservative government tenure.

Lumsden defended zero-hours contracts, stating they provide necessary flexibility for many workers who prefer not to commit to fixed hours.