← Back to House of Commons Debates
Youth Unemployment
17 March 2026
Lead MP
Pat McFadden
Debate Type
Ministerial Statement
Tags
TaxationEmploymentBenefits & WelfareChildren & Families
Other Contributors: 47
At a Glance
Pat McFadden raised concerns about youth unemployment in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
I would like to make a statement on our new package of support to tackle the long-term problem of youth unemployment. The UK has historically high levels of employment overall, with the Office for Budget Responsibility predicting that employment will rise in every year from 2026 and unemployment will fall each year after this peak year. However, there is a particular issue facing young people, as nearly one million are not in education, employment or training (NEET), which needs to be addressed. The package aims to offer more hope and opportunity for young people, despite the Conservatives' claims that recent decisions have worsened the situation.
Wendy Morton
Con
Birmingham Edgbaston
Question
Ms Morton interjected during the Minister's statement, suggesting a point of contention but without specifying her question or concern.
Minister reply
The minister did not respond to Ms Morton’s intervention directly in the provided transcript.
Other MP
not specified
Question
Not specified in the given text
Minister reply
Not applicable as no specific Q&A pair is detailed beyond initial interjections.
Helen Whately
Con
Faversham and Mid Kent
Question
Challenged the Secretary of State on the effectiveness of the new policy, questioning funding sources, potential impact on youth employment, fraud prevention measures, and economic coherence. She also criticised the government's record on apprenticeships and welfare reform.
Minister reply
Responded by emphasising that the Conservative party inherited a problem they failed to solve and has learned nothing since then. He pointed out that young people deserve support through opportunities rather than condemnation and highlighted the hiring incentives and bonuses for small businesses to hire young apprentices as part of the government's plan.
Question
Asked if the Secretary of State agreed that youth unemployment was a scandal demanding action, and inquired about how this new investment would support young people in St Helens North.
Minister reply
Confirmed that young people deserve support and offered hope through hiring incentives for small businesses to hire young apprentices. He emphasised providing opportunities for pride, purpose, and dignity through work.
Question
Questioned the government's approach to youth unemployment, highlighting how national insurance hikes worsened the situation. He praised organisations supporting young people but raised concerns about removing funding for management apprenticeships and the impact of NIC hikes on industries like hospitality in Torbay.
Minister reply
Responded by clarifying that employer national insurance contributions do not apply for employees under 21 earning less than £50,000 annually. He challenged the Liberal Democrats' position supporting extra NHS spending without supporting revenue-raising measures and emphasised Labour's prioritisation of young people over management courses due to the scarring effects of youth unemployment.
Rushanara Ali
Lab
Bethnal Green and Bow
Question
Welcoming the initiative, Rushanara Ali asks about support for disabled young people and seeks clarification on delays in Access to Work programme. She also queries how charities and social enterprises will be supported.
Minister reply
Pat McFadden highlights the Connect to Work and WorkWell programmes aimed at supporting disabled individuals. He acknowledges issues with Access to Work but states it is important and aims to reduce backlogs.
Question
Morrissey questions how businesses will create jobs for young people given the national insurance tax rise and Employment Rights Act 2025.
Minister reply
Pat McFadden welcomes the youth guarantee initiative and asserts that the problem is not new, but the package announced today offers substantial help to young people.
Newcastle upon Tyne North
Question
McKinnell asks how the Department will ensure administrative processes are fair and do not create burdens for small and medium-sized businesses.
Minister reply
Pat McFadden welcomes the question and notes that systems need to be easy to use. He mentions hiring bonuses for young apprentices as a game changer for small and medium-sized enterprises.
Question
Bedford criticises the Government's economic approach, linking it to tax rises, regulatory changes, and the Employment Rights Act 2025.
Minister reply
Pat McFadden defends the initiative as a long-term solution for youth unemployment, citing lower life expectancy among NEETs compared to their peers in work.
Question
Ryan commends the employer NI exemption and hiring bonus but seeks assurance that these benefits will reach young people in Burnley.
Minister reply
Pat McFadden acknowledges the 40% drop in youth apprenticeships under Conservatives and emphasises the importance of prioritising opportunities for younger groups.
Question
Milne questions the redirection of resources from level 7 apprenticeships to younger groups, citing construction sector concerns.
Minister reply
Pat McFadden argues that focusing on young people is necessary given limited public budget and the long-term impact of youth unemployment.
Jim McMahon
Lab
Oldham West and Royton
Question
McMahon highlights a 16% vacancy period for apprenticeships, suggesting this impacts NEET figures negatively.
Minister reply
Pat McFadden agrees that clear information on applying for apprenticeships is crucial, advocating for better dissemination of such information.
Chingford and Woodford Green
Question
Duncan Smith suggests focusing on older individuals moving through the job system faster alongside younger people and questions national insurance impacts.
Minister reply
Pat McFadden respects Duncan Smith but criticises Conservatives for not reforming welfare effectively. He acknowledges the need to evaluate programmes like Work programme.
Question
My generation has faced deep generational inequalities over the last decade. Nowhere is that clearer than in the fact that one in eight young people are not in education, employment or work—a generation lost. What steps is the Secretary of State taking to ensure that his Department and the Government are hearing directly from young people so that we can fully understand the barriers they face when entering work?
Minister reply
My hon. Friend is right about the high ratio of youth unemployment being too high, which grew significantly in recent years. The reforms include apprenticeship changes, help for long-term unemployed individuals, short apprenticeships courses and a hiring bonus to provide young people with opportunities.
Question
People with special educational needs and disabilities are more likely not to be in employment or training. What specialised support will be on offer to young people with SEND without EHCPs who are looking for work or apprenticeships, as well as what new guidance employers will get?
Minister reply
The hon. Member raises an important point about youth unemployment starting earlier than age 16 and the reforms to the SEND system announced recently to provide maximum opportunity for people with special educational needs.
Dan Carden
Lab
Liverpool, Walton
Question
How does he plan to measure the success of this scheme, and how does he think the Government and our education and work systems need to be more agile, given the onset of artificial intelligence technology?
Minister reply
The reforms are about helping young people cope with technological changes in the labour market. For example, different apprenticeship courses will train young people for a changing technological environment.
Simon Hoare
Con
North Dorset
Question
Why does he think that unemployment is always higher at the end of a Labour Government?
Minister reply
The OBR predicts that unemployment will peak this year and then fall in every year of the forecast. The country is still paying for previous Governments' actions.
Question
Can my right hon. Friend assure me that the work we are doing will not just benefit large employers such as Caterpillar, but put in place opportunities in the supply chain for small and medium-sized enterprises?
Minister reply
The hiring bonus for young apprentices will help SMEs. The Federation of Small Businesses has welcomed this package.
Wendy Morton
Con
Aldridge-Brownhills
Question
For this scheme to work, we need vacancies for young people, yet businesses up and down the country are going bust and unemployment is going up. I urge the Secretary of State to speak with the Chancellor and ask her to reverse the jobs tax.
Minister reply
The right hon. Lady mentioned vacancies—there are about 700,000 in the economy including 50,000 in manufacturing. We need to help young people be trained and have confidence, skills and support.
Question
Derby is a city of makers with a highly skilled workforce. How will this Government work in partnership with businesses, including SMEs, to provide opportunities to young people?
Minister reply
There are 50,000 vacancies in manufacturing right now. What the trade bodies tell me is that they need help with skilling young people to take up those vacancies.
Kirsty Blackman
SNP
Aberdeen North
Question
Will he give us an assurance that the House will get this information at the earliest opportunity, so that we can work together to ensure that young people will have the opportunities they deserve?
Minister reply
The rate of youth unemployment is higher in Scotland. The hiring bonuses will be introduced from this summer and apprenticeship changes from later this year.
Question
Does my right hon. Friend agree with me, Blackpool businesses and the Federation of Small Businesses that this plan is a game changer in tackling youth unemployment in Blackpool and other coastal communities across the country?
Minister reply
I thank my hon. Friend for his work organising a successful jobs fair where more than 1,000 jobs were allocated on the day. Hospitality is a great entry route for young people.
John Glen
Con
Salisbury
Question
I refer the House to my entry in the Register of Members’ Financial Interests. I share the concern of many on the Opposition Benches about the national insurance increase, but I am particularly concerned by what is happening with graduate unemployment, which we have seen increase by 46% over the past six years. I draw the Secretary of State’s attention to the work of upReach, a charity that I have been involved in over the past few years. It is a social mobility charity that offers workshops, work experience and career coaching to young people. Will he engage with organisations such as upReach and Nick Bent, the excellent CEO who runs it, to see what lessons can be learned? In a world where AI is already taking many graduate jobs, it is concerning that the trend will only accelerate further.
Minister reply
As the right hon. Member knows, I have great respect for him. I am happy to reach out to upReach to speak about the work to which he refers. As I said a moment ago in response to another question, graduate unemployment is an international issue, not just one for the UK. There has also been an uplift in the United States, which we think of as possibly among the most dynamic economies in the world. Precisely because there is technological change, we need to help young people and support them through it.
Question
Before being elected to this place, I spent many years working for charities seeking to tackle the challenge of youth unemployment. I remember fondly the future jobs fund, which, under the last Labour Government, delivered real change for people across the country. I have established the Get Hyndburn Working group to help tackle the challenge of economic inactivity in my constituency. It would be helpful if the Secretary of State could outline how what he has announced today will support that group in its endeavour to see young and, of course, older people secure good employment. Will he also—as he develops further strategies in this regard—pay particular attention to the importance of place and locally-led decision making, in order to tackle the specific challenges experienced in different parts of the country as we seek to get everyone into a good job?
Minister reply
I thank my hon. Friend for drawing attention to the record of the last Labour Government. I have described this as a new deal for new times, and it does adapt some of the lessons that we have learnt in the past to today’s very changed labour market. She mentioned the importance of locally-led work. It is true that local labour markets differ, and I want to work closely with local authorities and elected mayors on this agenda, because I think that they all want the best for the young people in their area.
Question
Measures to support about 17% of our young people in Wales who are not in education, employment or training to gain employment are welcome, although I prefer to use the term “LEET”—looking for education, employment or training—which I think is a much more positive way of viewing our young people. However, apprenticeships and skills are devolved in Wales, so will the Secretary of State tell me which aspects of his announcement apply to the young people of Wales and the other devolved nations?
Minister reply
I agree that “NEET” is not the best and most user-friendly term, but it has been used for some time. As for the hon. Lady’s question about what is devolved and what is UK-wide, the hiring bonus will apply throughout the UK, but the apprenticeship aspects are devolved to Wales.
Question
One of my main priorities as an MP is to ensure that we see more of our young people in good, fulfilling work, because I know that far too many young people in Clwyd North are unable to fulfil their potential. I am excited about the £3,000 youth jobs grant and the expansion of the youth guarantee in Wales, but can the Secretary of State tell me more about the difference this will make to young people in Clwyd North?
Minister reply
I think that the statement offers hope to young people throughout the United Kingdom. I look forward to a positive and close working relationship between the UK and Welsh Governments on this issue, because I believe that both Governments share a desire for young people, in Clwyd North and everywhere else in the country, to have the best start in life.
Question
I think we can all agree that tackling the rise in youth employment is very important, but I am concerned about the approach that is being adopted for that purpose. We are essentially taking money away from employers and then giving some of them some of it back. Has the Secretary of State considered, for instance, the use of existing levers in relation to employer national insurance? That would be an obvious way to address the issue and ensure that some of our young people are employed.
Minister reply
The hon. Lady refers to national insurance. As I have said, there is an existing tax break for employers of people under the age of 21 in the system, and they will continue to have that, but in addition they will have the hiring bonuses that I outlined in the statement.
Question
Under the previous Government, as the Secretary of State mentioned in his statement, youth employment never reached pre-financial crash levels in any single year, so the country had suffered a long period of stagnation. Crucially, some young people, unlike a bloke my age, have never known what an active Government can do to get them into good work. Will the Secretary of State confirm that this targeted package of support is precisely what the young people of this country need in 2026, and that it can finally turn the tables on years of Tory decline?
Minister reply
My hon. Friend is right. Let me repeat what he said, so that the whole House hears it: when the Conservative party was in power, there was not a single year in which youth employment reached the levels that there had been before the financial crash.
Question
The Chancellor has spent the last 18 months pricing young people out of jobs, and now the Secretary of State has been asked to ride to the rescue by paying companies to get the same young people back into work. The Government are effectively robbing Peter to pay Paul. Why does he think that youth unemployment in my constituency is up by 15% since the general election?
Minister reply
Youth unemployment has been going up since 2022—it has been going up for around four years. What we have not had is a specific package to tackle it, but that changes with the package that I have announced today, which will offer real hope and opportunity to young people in the hon. Gentleman’s constituency.
Question
I welcome the support for small and medium-sized enterprises in my Shipley constituency, which will be able to take on young people who have been long-term unemployed and to offer apprenticeships, but the Secretary of State will know that young carers face additional challenges with getting into education, training or work. Shipley college provides excellent training opportunities, but often struggles to find work placements. Will he commit to working with DFE to ensure that all young people, including young carers, can benefit from today’s announcement?
Minister reply
My hon. Friend is right: there is a particular challenge for young carers. A significant proportion of the 1 million young people who are not in education, employment or training have caring responsibilities.
Question
Like the rest of the nation, my constituency of Leicester South struggles with youth unemployment, and many young people are not in education or training. The statement is welcome to a certain degree, but I have a technical question for the Secretary of State. Which age range will bonuses cover? Is it 18 to 21? Also, when will the bonuses be paid? Will it be on hiring, or after a certain period of work?
Minister reply
It will apply to young people between the ages of 18 and 24. The hiring bonus will be available from this summer, and we will look at having a retention mechanism so that people are not hired one day and let go the next.
Question
Apprenticeship starts fell under the last Government, largely driven by the reduced uptake from SMEs, so today’s SME incentive is a game-changer. Can the Minister confirm that that incentive can be stacked with other incentives—for example, when hiring a care leaver—and will he send a message from the Dispatch Box to York employers that they should take on apprentices and provide the opportunity of a lifetime?
Minister reply
I think employers want to do the right thing—they want to give young people a chance. My hon. Friend asks whether the incentives can be stacked, and the answer is yes. For example, if a small or medium-sized enterprise wants to take on a young apprentice who has been unemployed and on universal credit for six months or more, it can claim both the £2,000 apprenticeship incentive and the £3,000 hiring bonus.
Question
The MP asked for a message from the Secretary of State to businesses in his constituency, highlighting concerns about high business rates and national insurance contributions impacting their ability to retain staff. He suggested that the support package does not address these fundamental issues.
Minister reply
Pat McFadden responded by suggesting employers look at the available support packages such as hiring bonuses for young unemployed people, specific help for SMEs when hiring apprentices, and foundation apprenticeships in retail and hospitality industries.
Question
The MP noted that almost half of NEET young people are disconnected from traditional support systems. He questioned the role trusted adults can play in supporting these hidden young people into employment.
Minister reply
Pat McFadden highlighted the expansion of youth hub programmes and their ability to offer a range of help on health, housing, and work-finding fronts, tailored to how young people live their lives.
Question
The MP inquired about short AI courses mentioned in the statement, seeking more information on their duration, delivery, and enrolment process for Spelthorne's youth.
Minister reply
Pat McFadden explained that these short apprenticeship units can be as short as weeks rather than months. He assured the announcement of further details about these courses.
Question
The MP requested assurance on working with Scottish agencies and the Scotland Office to ensure maximum impact of the scheme in Scotland, addressing high youth unemployment there.
Minister reply
Pat McFadden confirmed his willingness to work closely with relevant bodies, including visits to jobcentres like Bellshill to understand local issues.
Question
The MP highlighted high youth unemployment rates in parts of Birmingham and Walsall. He questioned how the measures will specifically target these areas.
Minister reply
Pat McFadden assured that all constituents, including those in high unemployment regions like Perry Barr, can benefit from the proposals.
Question
The MP criticised previous policies and emphasised the need for support to young people in Glasgow. He asked how the package would provide opportunities there.
Minister reply
Pat McFadden outlined hiring bonuses and subsidised job offers aimed at providing wage and work experience to help young Glaswegians.
Question
The MP welcomed the measures but noted that a manufacturing firm's managing director found the hiring bonus insufficient. She asked about further support for young people in their workplace.
Minister reply
Pat McFadden emphasised the importance of youth apprenticeships and highlighted changing attitudes towards work-readiness among young people.
Question
The MP praised a supported internship scheme run by Asda, Project SEARCH, and Sandwell College in Great Bridge. She asked for recognition of their efforts.
Minister reply
Pat McFadden congratulated the partnership and emphasised the importance of providing confidence and opportunities to young people with learning disabilities.
Question
I thank the Secretary of State for his statement. As someone who represents an area where more than 90% of businesses are SMEs, I particularly welcome the financial incentives for SMEs to take on young apprentices in key industries such as hospitality and retail. However, SMEs lack HR departments, and when I speak to business owners, they talk a lot about the complexity of engaging with the system. How will the Secretary of State make the system simpler for SMEs to engage with?
Minister reply
My hon. Friend is right that we have tried to put extra incentives in this package for small and medium-sized businesses. In particular, there is the hiring bonus for young apprentices which aims at both young people and small businesses. I want to work with officials to make the information about this one and the administration of it as clear and simple as possible.
Question
I greatly welcome this announcement, which will help transform life opportunities for young people in my constituency who have been left behind by the SNP. Can my right hon. Friend expand on how the positive actions of this Government will support young people in Scotland?
Minister reply
The programme I am announcing today offers hope to young people in his constituency; the £3,000 hiring bonus will be available throughout Scotland. Of course, apprenticeship funding is devolved but I hope that the Scottish Government will provide the maximum opportunity for young people to combine an apprenticeship role with the hiring bonus.
Question
I am disappointed by those on the shadow Front Bench who are sneering and suggesting that plunging 3,000 Gloucester children back into poverty will solve youth unemployment issues. Can my right hon. Friend explain how more young people will be able to benefit from the Government’s reforms?
Minister reply
Tom Kerridge backs this proposal and I agree with my hon. Friend on the response from those on the Opposition Front Bench. Young people throughout the country will have heard them dismiss the help that we are putting in place; our package is about giving hope and opportunity to young people.
Question
SMEs in Darlington desperately want to pass on opportunities to the next generation. Can the Secretary of State outline any sector-specific restrictions on the types of SMEs that can take advantage of the bonus?
Minister reply
We do not propose restricting the hiring bonus by sector, though my hon. Friend will have heard me list in my statement the areas covered by new apprenticeship units—areas such as artificial intelligence, electric vehicle charging, infrastructure, solar panel installation, welding and so on.
Question
Can my right hon. Friend please confirm that this policy announcement will help us bring in the new generation of skills we need for our economy?
Minister reply
This package can make a big contribution towards bringing in the new generation of skills; with today’s extra help for apprenticeships, we can begin to change manufacturing's difficulty in finding skilled workers.
Question
How can young people and businesses in my constituency of Redditch take part in this scheme which will finally start addressing the tragedy of NEETs in our constituencies?
Minister reply
This statement and package is a different approach with a very clear message: we believe in Britain’s young people; we want to give them a better future; and we have a package of help to enable them to achieve that.
Shadow Comment
Helen Whately
Shadow Comment
The Government has lost control of welfare spending, with sickness benefits alone costing £109 billion by the end of the decade. The Conservative Party criticises Labour for increasing benefit expenditure, including an extra £3 billion spent on scrapping the two-child benefit cap. Youth unemployment now rivals that of Greece at over 16%, and there are nearly one million young people who are NEET. Despite these issues, the Government’s new policy is described as a sticking plaster costing over £1 billion in state-funded jobs. The shadow minister also questions the quality of apprenticeships and criticises Labour's lack of action on reducing university costs and student debt. She further calls for welfare reform that actually brings down the benefits bill rather than increasing it.
▸
Assessment & feedback
Summary accuracy
About House of Commons Debates
House of Commons debates take place in the main chamber of the House of Commons. These debates cover a wide range of topics including government policy, legislation, and current affairs. MPs from all parties can participate, question ministers, and hold the government accountable for its decisions.