Lord Leong (Lab)

My Lords, I am grateful for the support for the National Minimum Wage (Amendment) Regulations 2026 and respect the thoughtful contributions from across the House. I thank my noble friend Lady Carberry for her support for the instrument and note with thanks her service on the Low Pay Commission. I also thank my noble friend Lord Sikka for his support and insightful comments. Let me hit the nail on the head about the Tony Blair Institute. Tony Blair’s Government created the LPC and we trust its judgment to balance competing factors, including businesses, the economy and growth. In 2025, the UK was the third fastest-growing economy in the G7, behind only the US and Canada. To declare an interest, I am a personal friend of Tony Blair. There are a lot of things I agree with him on but I totally disagree with him on this matter. Contrary to the amendment tabled, the Government are committed to helping young people to get and retain good jobs. The Low Pay Commission was specifically asked to consider the impact of the minimum wage increase on youth employment and participation in education. After thorough consultation and analysis of labour market evidence, the commission has found no clear indication that recent increases in the national minimum wage have led to a decline in employment among young people. The Government remain committed to ensuring that work pays, while making sure that any future adjustments to youth rates do not harm employment opportunities. Building on the £1.5 billion announced at the Budget for the youth guarantee and changes to the growth and skills levy, the Secretary of State for Work and Pensions has announced an additional package of almost £1 billion in investment, unlocking up to 200,000 jobs and apprenticeship opportunities by reducing the cost of hiring young people. I agree with my noble friend Lady Carberry when she says that the youth jobs grant provides an employer with hiring incentives worth £3,000. Let us not pooh-pooh that; it is money going into employers to employ young people between the ages of 18 and 24 who have been on universal credit and looking for work for six months.