Over 80 of Britain's biggest retail CEOs have told the Prime Minister that government policies are making it harder to hire young people. Helen Dickinson, Chief Executive of the British Retail Consortium (BRC), warned that retailers are being priced out of hiring young people as government taxes and red tape push up the cost of entry-level jobs.
In a letter co-ordinated by the British Retail Consortium (BRC), business leaders warn that government must take urgent action to tackle the deepening unemployment crisis, including bringing down the cost of employing young people, in order to “turn around the fortunes of young people everywhere.”
The intervention comes as Alan Milburn’s interim report into young people and work highlighted the scale of the challenge, warning that 1.25 million under-25s could become unemployed in the next five years. Meanwhile, businesses face a cataclysm of rising National Insurance contributions, years of above-inflation increases to the National Living Wage, and changes to employment rights – policies which need to be revisited if Government really wants to shift the dial on youth unemployment.
Retail is the UK’s most important entry point into work, accounting for almost a quarter of all youth employment. Hundreds of thousands of young people secure their first job through the flexible, local, and seasonal opportunities that the industry provides. But with 400,000 retail jobs already lost over the past decade, vital routes into employment could be at risk if policy decisions continue to increase the costs and risks of hiring.
Today, business leaders are calling on government to strengthen support for youth employment, bring down the cost of employing young people and ensure new employment and skills reforms do not undermine its own goals to combat the crisis. The industry stands ready to work alongside government to deliver practical solutions that will help more young people access employment and create pathways for the next generation.
The letter calls on Government to:
1) Establish a joint government-retail taskforce to simplify and enhance routes into employment for young people.
2) Bring down the cost of employing young people to help businesses create more jobs.
3) Implement employment and skills reforms in a way that supports entry-level recruitment and progression.
Helen Dickinson, Chief Executive of the BRC, said:
“The message from retail is clear: if government is serious about tackling youth unemployment, it cannot keep making it more expensive to create jobs.
“Retail and its supply chain account for almost a quarter of all youth employment, making our industry uniquely placed to support young people through flexible, entry-level roles and clear routes for progression. But this first step on the ladder is cracking under the weight of government-imposed costs and regulations.
“Youth unemployment is a challenge that government and business must tackle together. If government wants more young people in work, it must create the conditions that allow businesses to hire, train and develop the next generation. Retailers stand ready to work in partnership with government through a joint retail-government taskforce to strengthen routes into employment, remove barriers to hiring and help more young people take that crucial first step into the world of work.”
Ashwin Prasad, Tesco UK CEO, said:
"Retail is one of the UK’s great engines of opportunity and is uniquely placed to help tackle the challenge of youth unemployment and rising numbers of young people not in education, employment or training.
"Our industry gives millions of young people a first step into the world of work, with opportunities to develop skills, gain experience and build long-term careers, regardless of background.
"We firmly believe that, if Government wants to expand opportunity and reducing economic inactivity among young people, retail can and should be at the heart of any solution."
Anthony Hemmerdinger, Senior Vice President and Managing Director, Boots UK & ROI, said:
“I’m passionate about the role the retail industry can play in supporting youth employment and social mobility. As someone who started my career in retail at 16 working in stores, I know just how important retailers are in providing young people with opportunities to experience the world of work and build their confidence and skills. Boots has a strong track record in investing in youth employment, work experience and training, including through our apprenticeships programmes and longstanding partnership with The King’s Trust. With a supportive government policy framework, we could offer even more opportunities to young people in the future.”
Karen O’Rourke, Managing Director, H&M UKIE, said:
“Too many young people are still being locked out of opportunities, and at H&M we see firsthand how important it is to create clear, inclusive pathways into work. Retail has a unique role to play in opening those doors, which is why we fully support the BRC’s call for stronger partnership with government to remove barriers and expand access to meaningful jobs. By working together, we can help more young people build the skills and confidence needed for long-term, sustainable careers.”
Ryan McDonnell, Chief Executive Officer at Lidl GB said:
"At Lidl GB, we see the incredible potential of young people every single day - whether they are starting out on our shop floors, in our warehouses, or in office-based roles. They are the future of British retail. Since 2024, our degree apprenticeship scheme has been a shining example of this, offering young colleagues the chance to study, earn a degree, and springboard straight into their careers.
"We’ve always been proud to offer a brilliant launching pad, but there is a massive opportunity for the retail sector and the Government to team up to do even more. By working together and introducing new initiatives, we're committed to unlocking new doors, championing social mobility, and giving the next generation the ultimate head start in work."
Rob Swain, GM KFC UK&I, said:
“At KFC, we see the reality behind the statistics every day. Hospitality is far more than a first job or a fallback option – it's a place where young people build confidence, develop lifelong skills and discover their potential. Through opportunities in our restaurants and our pre employment programmes for NEET young people Hatch in collaboration with KFC Youth Foundation, we're helping young people gain experience, access employment and take meaningful steps towards their futures. We are keen to work with government and BRC to bring more young people into our restaurants to open up their opportunity to thrive.”
Carina Hummel, UK Managing Director for Optics at Specsavers, said:
"At Specsavers, we’ve seen firsthand how retail and healthcare businesses like ours can be a genuine launchpad for young people – not just a first job, but the start of a genuine career. We offer a number of early career opportunities for more than 1,200 youngsters a year, including around 700 pre-registration trainees who join Specsavers as graduate optometrists.
"Our apprenticeship programme has grown steadily since 2016 and now supports 500 to 600 apprentices every year in a variety of roles, from optical assistant and lab technician to clinical leadership. Around 90% of those apprentices go on to permanent roles with us. This isn't about filling vacancies; it's about developing the next generation of talent to help strengthen our ability to deliver high-quality community eye and hearing care to our customers for years to come.
"Specsavers recently launched its first Audiology Graduate Programme, offering newly qualified audiologists and hearing aid dispensers a structured 18 month pathway within its hearing care practices.
That's why we're proud to sign this letter. But ambition alone won't solve the entry-level jobs crisis. Employers like us need government to create the conditions that allow us to reach young people and build the pipeline of talent that our businesses, and our customers, depend on."
Fran Barnes, Chief Executive of the Horticultural Trades Association (HTA), said:
“If you make it more expensive to employ people and continue heaping costs onto businesses, the natural conclusion is that fewer people will be employed. We warned about this with increases in employers’ National Insurance with only a few months’ notice, alongside rises in the National Living Wage, changes to business taxation and more regulation, including EPR.
“SMEs are the lifeblood of the economy and businesses are crying out for people who want a career in our sector, but that is not the same as being able to afford to employ them. If SMEs are given the right environment and can operate with certainty and confidence then they can be a key part of the solution – as the engine room of jobs, skills and opportunity.”
Read the letter here.
Signatories:
Giles Hurley (Aldi), Peter Wood (AllSaints), John Boumphrey (Amazon UK), Maria Hollins (Ann Summers), James Goodman (Asda), Sue Kemp (Associated Independent Stores), Tjeerd Jegen (B&M Retail), Graham Bell (B&Q), James Barker (Barker and Stonehouse), Nick Collard (Bensons for Beds), Alasdair Murdoch (Burger King UK), Meryl Halls (Booksellers Association), Nigel Murray (Booths), Anthony Hemmerdinger (Boots UK), Charmaine Griffiths (British Heart Foundation), Helen Dickinson (British Retail Consortium), Darcy Willson-Rymer (Card Factory), Jon Lake (Chopstix Group), Chris Burns (Company Shop Group), Alex Baldock (Currys), David Robinson (Dobbies Garden Centres), Nicola Frampton (Domino’s Pizza UK), Ije Nwokorie (Dr Martens), Nigel Darwin (Dune Group), Clodagh Moriarty (Dunelm Group), Hetal Patel (Federation of Independent Retailers), Paul Hinds (F. Hinds), Mia Fenwick (Fenwick), Ed Duggan (Fishpools), Tom Athron (Fortnum & Mason), Noel Coyle (Fraser Hart), Anna Steer (Freemans Grattan Holdings), Roisin Currie (Greggs), Svante Andersson (Haypp Group), Doug Putman (HMV), Fran Barnes (Horticultural Trade Association), Tarsem Dhaliwal (Iceland Foods), Mostafa El Garaa (IKEA UK and Ireland), Regis Schultz (JD Sports), Jason Tarry (John Lewis Partnership), Mark Wright (JoJo Maman Bébé), Rob Swain (UK&I KFC), Thierry Garnier (Kingfisher), Guy Meakin (Krispy Kreme UK), Ian Williams (Lakeland), Ryan McDonnell (Lidl GB), Alison Hands (Lincolnshire Co-op), Sarah Ashby (Mamas & Papas), Mike Tomkins (MandM Direct), Stuart Machin (M&S), Henrik Nordvall (Matalan), Lauren Schultz (McDonald’s Restaurants), Nick Stowe (Monsoon Accessorize), Rami Baitiéh (Morrisons), Mark Neale (Mountain Warehouse), Anthony Short (Music Industries Association), Hannah Gibson (Ocado Retail), Oliver Tress (Oliver Bonas), Paula MacKenzie (Pizza Express), Kari Rodgers (Primark), Christos Angelides (Reiss), Kypros Kyprianou (Ryman, Robert Dyas, Boux Avenue, London Graphic Centre (part of the Theo Paphitis Retail Group)), Simon Roberts (Sainsbury’s), Colin Temple (Schuh), Karen Scott (Scotmid), Dr Pete Cheema OBE (Scottish Grocers’ Federation), John Mewett (Screwfix), Paul Hayes (Seasalt), Steve Reid (Simba Sleep), Ben Stimson (Southern Co-op), Andy Lightfoot (Space NK), Michael Fletcher (Spar UK), Carina Hummel (Specsavers Optical Superstores), Martin Wildsmith (Sue Ryder), Tobin James (Tempur UK), Ashwin Prasad (Tesco), Justin Hampshire (TFG Brands), Avril O’Sullivan (The Body Shop), Kate Allum (The Co-op Group), Gemma Sault (The Giftware Association), Patrick Birkbeck (The House of Bruar), Robbie Feather (The Very Group), Gavin Peck (The Works Stores), Lakhir Sanghera (Toolstation), Tracey Verghese (White Stuff), David Wood (Wickes)
