Lord Harlech (Con)

My Lords, as a member of the committee, I also express my gratitude to our chair, the noble Baroness, Lady Manningham-Buller, along with our clerk and her outstanding team. I draw attention to my registered interests as an employer and an active Army Reserve officer. I also pay tribute to the exceptional staff at Blackpool and The Fylde College, and all our witnesses. However, I want to reiterate our chair’s point that the publication of the Government’s response took eight months and was published on the day immediately after the House adjourned. I have formally written to the Government Chief Whip, the Minister, and the chair of the Liaison Committee regarding the timing of this response and performance. The rate at which people are speaking makes this debate feel like a QSD. In conjunction with the meagre three minutes offered to respond to the committee’s serious hard work of nearly a year, my personal view is that this behaviour from the Government displays more than a degree of contempt for the committee’s work. It is also a shame that not a single Labour Back-Bencher who was part of the committee is here today; they were all very valid members during the committee’s work. Turning to the substance of our report, employment remains the single most effective vehicle for social mobility—far surpassing any strategy, taskforce or policy framework—but to create the jobs, you need to create the right environment, including housing, transport and digital connectivity. However, cumulative burdens since 2024 have made hiring increasingly costly: higher employer national insurance contributions; above-inflation minimum wage growth, which has narrowed the youth pay differential; and immediate employment rights under the Employment Rights Act. Consequently, sectors like retail and hospitality—traditionally the primary entry point for young workers—are experiencing severe job cuts. The British Chambers of Commerce now projects youth unemployment to reach 17.6% next year. We should not be surprised that taxing employment results in fewer available jobs. When our committee recommended lowering the levy rate for smaller businesses, we were informed that levy operations fall under Treasury jurisdiction. This policy environment leaves nearly a million young people not in education, employment or training. Among them, 60% have never held a job, compared to 40% in 2005. Government reviewer Alan Milburn calculates the annual economic cost of youth disengagement at £125 billion, exceeding our national education budget. The repercussions extend beyond economics. Milburn’s findings indicate that young men in the NEET category are five times more likely to acquire a criminal record than their peers, while half of those aged 15 to 17 in youth offender institutions possess primary school levels of literacy and numeracy.