Yesterday, the House of Lords debated the government’s new youth employment support package, which includes hiring subsidies, apprenticeships and job guarantees.
o £3,000 to companies who recruit someone who have been out of work for six months or more
o £2,000 apprenticeship incentives for SMEs
o The expansion of the jobs guarantee scheme
o The creation of 20,000 job and apprenticeship opportunities over three years
The debate covered youth unemployment more broadly, but retail and hospitality were repeatedly referenced as key entry-level employment industries. We briefed friendly peers ahead of the debate and BRC was namechecked a couple of times by Baroness Stedman-Scott.
We’re keeping in close contact with peers on a range of issues, particularly employment (including the implementation of the remaining parts of the Employment Rights Act and the cost of employment) and will continue to land our messages with Lords and MPs – this is an issue which is likely to remain a priority for government for the rest of the year.
Key points to arise during the debate included:
• The cost of employment and the impact this is having on entry level job creation:
o Baroness Stedman-Scott quoted BRC CEO, Helen Dickinson, who said that ‘the UK faces the prospect of a jobless generation’ under the current cost pressures
o BRC stats which state the cost of employing a full time worker rose by 10% following the 2024 Budget was also mentioned
o years
• Skills and training:
o Discussions centred around ensuring young people are equipped for the jobs available and improving the link between education, training and employment
o Foundational apprenticeships in retail and hospitality were discussed, in some cases as a gateway to undertaking a full apprenticeship
BRC position:
• The cost of employment continues to be a huge burden on the industry. Changes to National Insurance and the National Minimum Wage have made hiring increasingly difficult. With over 5 million young people unemployed, Government must ease the burden on an industry which provides entry level jobs.
• Introducing foundation apprenticeships at the expense of the Level 2 Retailer apprenticeship would reduce flexibility by adding an age restriction (16-21) for entry level routes. There is concern that setting arbitrary targets for young people will be to the detriment of upskilling and reskilling older workers, including vulnerable groups such as carers or prison leavers.
• The Employment Rights Act, if implemented poorly, may harm retailers’ ability to offer flexible, entry level jobs. Proposals around guaranteed hours and trade union access risk unintended consequences which could impact hiring.
