Pat McFadden MP: speeches

Speeches

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  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 the new apprenticeship units—areas such as artificial intelligence, electric vehicle charging, infrastructure, solar panel installation, welding and so on. As regards the new short apprenticeship units, there are some specific areas that we are putting forward first.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  I thank my hon. Friend and parliamentary neighbour for her question. I know Asda in Great Bridge. What a wonderful employment rate that is, after the programme. It gives hope to young people with learning disabilities, who should never be written off; there has been too much of that in the past. Part of our work is to get more help and support to young people with disabilities, in order to give them the confidence and the opportunity that a job can bring.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  We heard the Conservatives defend the 40% figure on the drop in youth apprenticeship starts—that is on the record. If they want to defend and own that record, so be it, but we want to prioritise opportunities for young people, and that is what we are doing with this package. There is a lot in it for employers in Burnley and for small and medium-sized businesses, which now have a new financial incentive to give a young person the vital start in life that can set them on a path of pride, purpose and dignity. That is what having a job gives you.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  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 is aimed at both young people and small businesses. I hope that will be of help to the small businesses in her constituency. She is also right that clarity of information is important. Schemes like this can be complex, so I want to work with officials to make the information about this one, and the administration of it, as clear and simple as possible—consistent, of course, with the need to properly use and protect public money.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  My hon. Friend and I had a great day in Bellshill just before Christmas; I am grateful to him for the visit, and to the staff at the local jobcentre for explaining to us both the work that they were doing. 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, which is available to businesses across the country.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  The hon. Member mentioned his career in washing up, and let me tell him that we have that in common, because one of my first jobs was as a dishwasher in what I believe was Scotland’s first Mexican restaurant, Viva Mexico. I inherited that job from the current First Minister of Scotland, John Swinney, the previous dishwasher in that restaurant, so we can be the three founding members of a national union of dishwashers. The hon. Member asked for my message to employers in his constituency. It is to look at this package and avail themselves of the support in it—hiring bonuses for young unemployed people, specific help for small and medium-sized enterprises when hiring a young apprentice, and foundation apprentices for retail and hospitality industries. All those things should be good for the small businesses, particularly those in the hospitality sector, in his constituency.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  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. I commend the work of Shipley college, and I am very happy to keep talking to her about this issue to see what help we can give to young carers.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  Tom Kerridge has achieved a great amount and done fantastic things. I was very pleased to meet him and talk to him about this package a few days ago, and I welcome his warm support for it. 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. If that is what the Opposition want to do, that is up to them, but we take a very different view. We want to give hope and opportunity to young people; we want to stop dismissing them; and we want to give them belief in their future. That is what this package is about.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  Let me return the greeting of a happy St Patrick’s day to my hon. Friend. My hon. Friend makes an absolutely vital point about information. When I talk to young people, they tell me that when they are at school, there is a lot of information about how to apply for a university course. That is great, and it is a great route for young people, but the information on how to apply for an apprenticeship is not as clear; it is not readily available to them or as much a part of the preparation process that many schools put young people through. There is a job of work to be done on information, because we want the clearest, most user-friendly information possible to be available to young people and their parents when making such a vital decision about their future.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  Obviously, I know the west midlands well and I know the passion that our Mayor, Richard Parker, has for expanding opportunity, offering more skills and more opportunities to young people. I work closely with him on that agenda. I do not believe we should set area against area. Of course I am concerned about youth unemployment in the west midlands. I can assure the hon. Gentleman that his constituents and mine, and those in every other constituency in the west midlands, can benefit from the proposals I have brought forward today.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  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. Perhaps no other figure shows what a long-term problem this is. It is right that we have targeted support to enable young people not just to earn a wage, but to get the sense of pride and dignity that comes with having a job. I do not want to bombard the House with too many statistics, but another shocking one is that more than half the young people who are not in education, employment or training have never had a job in their life. They have never experienced the sense of discipline, obligation and pride that comes with getting up and going to work in the morning. That is what we have to change.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  In fact, we can hear them claiming it right now. But the truth is that the number of young people not in education, employment or training rose by 250,000 in the three years running up to the last election, and the Conservatives did precisely nothing about it. Youth unemployment has been rising since 2022, and youth employment never reached pre financial crash levels in any single year of the Conservatives’ 14 years in power. On top of that, the Conservatives kicked away the ladder of opportunity from young people when they presided over a shocking 40% fall in youth apprenticeship starts over the past decade. The problem is long term and deep rooted. We will back young people with more youth apprenticeships, more chance of getting a job, and more help in overcoming the challenges they face. We have already announced a youth guarantee to help the young unemployed. It involves intensive work coaching, 300,000 work experience and training places, and subsidised work for long-term unemployed people aged 18 to 21. However, we will now go much further, with an explicitly pro young people package, aimed at helping them to learn and earn. From this summer, we will introduce hiring bonuses for businesses that hire a young person who has been out of work for six months. The bonus will be worth £3,000 per young person. There will also be bonuses of £2,000 for small and medium-sized businesses that hire young apprentices. Both bonuses can be combined if the young person hired has been out of work for six months or more. What a contrast with the Conservatives’ record on apprenticeships, which was to take opportunity away from young people— [ Interruption. ] They don’t like to hear it, but I am going to continue! We are introducing new foundation apprenticeships in retail and hospitality, and new short courses in AI, electric vehicle charging point installation, electrical fitting and assembly, mechanical fitting and assembly, modular building, solar photovoltaic installation, and welding—the skills that young people need for the future. On top of that, the jobs guarantee, which we previously announced for the long-term unemployed, will be extended to those aged 22 to 24. Those young people will get six months of paid work, at 25 hours per week paid on minimum wage rates. Altogether, this will create 200,000 job and apprenticeship opportunities over the next three years. This is our new deal for new times, offering new hope to the young people who are so often disparaged by the Conservatives as shirkers and scroungers. Our message is different: “We back you, we believe in you and we want you to succeed.” The package that I have announced is new investment of about £1 billion, and it comes on top of the funding that we announced at the Budget. Taken together, it is a package of support for young people worth about £2.5 billion. The existing exemption from employer national insurance contributions for workers under 21 will stay in place. This package is not just pro young people; it is pro business. I welcome the comments by the Federation of Small Businesses, which said that the provision is a “game-changer” and “a decisive step forward”, and rightly describes the package as “pro-jobs, pro-opportunities”. The package has also been welcomed by large employers such as Amazon, Kier Group and PwC, and the welcome goes beyond business. We know that a lot of young people face challenges in the labour market, and the chief executive of Mental Health UK, Brian Dow, said that the package “will support young people to be ready for work and help organisations large and small to capitalise on the skills, talents and enthusiasm that young people have to offer.” As well as the package, there is an urgent need to offer help to young people, given technological and demographic change. They need our help, and we cannot afford to lose their talent and energy. This is about not just young people, but their parents and grandparents. This is a generational challenge, because who does not want their child or grandchild to have a better chance in life? That is why investment in the young is a bond between the generations. It is an act of solidarity that is in the interests of the whole country, because if a young person has prolonged periods out of work, the scarring effects can stay with them for the rest of their life. A young person under the age of 25 on the health element of universal credit is now less likely to get a job than someone over 55 on the same benefit. We have to act to change that. I am often asked, “So when will you do welfare reform?” Well, I tell the House that this is welfare reform. Putting work and opportunity at the heart of our system is the best reform we can make. Asking not just, “What are you entitled to?” but “How can we help you change your life?” is the change that the system needs. That view lies behind the changes that I am announcing in this package. I commend the statement to the House.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  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.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  I welcome the hon. Lady’s—somewhat limited—support for the announcement, but she is right that we need to support young people in the workplace. There is perhaps a touch of nostalgia about some of the comments about young people not being work-ready, because that was the traditional role of youth apprenticeships. When the ladder is kicked away from them, it is no wonder that more young people are not work-ready. We are changing that with this announcement, because we are re-emphasising the importance of youth apprenticeships. I hope she welcomes that part, too.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  My hon. Friend asks about disabled young people. It is really important that we get more help and support to disabled people who, in the past, were too often signed off, written off and forgotten about. That is not good enough for them or for the country as a whole. The Connect to Work programme, which is devolved to elected mayors and local authorities, is helping disabled people, and the WorkWell programme seeks to get over the divide between health advice and employment advice. She is right that there are issues with the Access to Work programme. It is a really good programme, but there is a backlog that I want to see reduced because it is an important programme that helps disabled people to get into work and stay in work.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  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. When we bring those things together, it sends a message that we want to help employers to employ young people and give them a good chance in life.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  I thank my hon. Friend for the enormous amount of work that he put into organising the successful Blackpool jobs fair, which I attended a few weeks ago. He is right that the evidence from that jobs fair is that the vacancies are there, with more than 1,000 jobs allocated on the day of the jobs fair itself. Hospitality is a great entry route for young people. We have announced a foundation apprenticeship in hospitality as part of this process, and I hope that extends opportunity to other young people, similar to the opportunities that he had when he was a young man.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  I am not sure whether the hon. Gentleman’s description of this statement will do me good or harm among my right hon. and hon. Friends, but once again he makes the mistake of assuming that this problem is something that happened only in the last 18 months, which is where the Conservative party is going wrong. It is a long-term and deep-rooted problem. We need a different approach to tackle it, and that is why we need to offer hiring bonuses to businesses and to redirect the apprenticeship system to help young people, precisely because of the long-term scarring effects of young people being out of a job for any length of time. That can mean worse mental and physical health and, in some cases, even lower life expectancy than their peers in work. We have brought forward this package of measures today because of our concerns about that.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  On the final question, I agree with my hon. Friend that this problem of young people not in education, employment or training is a long-term one that grew under the tutelage of the Conservative party, and about which it did precisely nothing. This statement and package is a different approach, with a very clear message behind it. Let us go out and sell it. That message is: 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.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  Let me praise the magnificent industries in the Derby area, many of them manufacturing companies. As I said, 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. That is precisely what will be made easier by the package that we have brought forward today.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  I warmly welcome the Chancellor’s support for this package and the help that she has given me in putting it together. The right hon. Lady mentioned vacancies—there are about 700,000 vacancies in the economy, including 50,000 in manufacturing. I attended a jobs fair in Blackpool a couple of weeks ago, where almost 1,000 jobs were allocated on the day. There are vacancies in the economy, but we have to help young people to be in a position to be trained and have the confidence, skills and support they need to take them up.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  I welcome the hon. Lady’s welcome of the youth guarantee. Perhaps she might have a word with her hon. Friend the shadow Minister, who did not welcome it. She asks about national insurance, but the problem is not new—what is new is the package of help for young people that I have announced today.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  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. My gentle advice to him is to go and make the most of this package. That is what he should do for the young people in his constituency.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  I thank my hon. Friend for his question—I know that he takes a deep interest in this issue. There is an urgent need to help young people with the technological change that is taking place in the labour market. That is not just a British phenomenon; graduate unemployment in the United States went up from 5.3% to 5.7% in the final quarter of last year, and youth unemployment in the United States reached a four-year high last summer. We have to be less insular in our debate and understand that young people face particular challenges. That is why, for example, the different apprenticeship courses that I outlined in my statement are really important. They will train young people to cope with a different technological environment and ensure that we give them the maximum chance of success.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  These short courses or apprenticeship units are something that employers have called for. Until now the minimum length of time for an apprenticeship has usually been eight or 12 months, or something like that, but these can be for a matter of weeks. We will publish more information about them as soon as we can. The sectors, including AI, in which the first wave have been announced are all sectors in which we will need the skills of young people. We are trying to adapt the training offer that we fund to the needs of employers, and one way to do that is with more short courses.