Pat McFadden MP: speeches

Speeches

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  My hon. Friend makes the very important point that a significant proportion of the 1 million young people not in education, employment or training are not claiming benefits at all, and not signing on for standard universal credit or the health element. One way in which we want to reach those young people is through the expansion of our youth hub programme, which gives them a chance to come into a place—often a sports or community institution—and get a range of help on the health front, the housing front and the work-finding front, because young people do not live their lives according to Whitehall departmental boundaries, and why should they? It is up to us to tailor the help to the way they live their lives, and get it to them in the places where they want to be.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  This package can make a big contribution towards that. As I have said, there are 50,000 vacancies in manufacturing in the UK today. That is partly because of the difficulty that people have in finding skilled workers. With today’s extra help for apprenticeships for young people, we can begin to change that. That is why it is such an important part of this package.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  The rate of young people not in education, employment or training is, I believe, even higher in Scotland than it is in the UK as a whole. The hon. Member asks for more information on timescales. The hiring bonuses, for example, will be introduced from this summer, and the apprenticeship changes will be introduced from later this year.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  I welcome my hon. Friend’s question and her praise for the great city of Newcastle, which I am sure we would all echo. On small and medium-sized businesses, she is right that we need to ensure that the systems are as easy to use as possible. There is a real direction of help in the package to small and medium-sized businesses, particularly with the hiring bonus for young apprentices. That is perhaps why the Federation of Small Businesses has described this programme as a “game changer” and a “decisive step forward.”

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  The OBR predicts that unemployment will peak this year and then fall in every year of the forecast— [ Interruption. ] Conservative Members disparage the forecast, but I gently remind them that disparaging the OBR did not work out too well for them a few years ago. In fact—to make a more serious point—the country is still paying the price for the fact that they did so, so I suggest that they learn that lesson.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  I would like to make a statement on our new package of support to tackle the long-term problem of youth unemployment. Let me begin by wishing you, Madam Deputy Speaker, and the whole House a very happy St Patrick’s day. This year, due to Lenten abstinence, I will toast it with Guinness zero—one of the world’s great inventions. The UK has historically high levels of employment overall. In its most recent report, the Office for Budget Responsibility said that employment would rise in every year of the forecast from 2026, and that unemployment would peak this year and fall in every year of the forecast after that. In fact, in only two of the last 150 peacetime years was the employment rate higher than it was in 2025. However, a particular and long-term issue faces the young, and it is time that young people were offered more hope and opportunity. That is what the package that we are bringing forward will do. At almost 1 million, the number of young people not in education, employment or training is much too high. The Conservatives try to claim that that is all a result of decisions taken over the past two years—

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  As the right hon. Member knows, I have great respect for him. I am happy to reach out to upReach to speak about the work to which he refers. As I said a moment ago in response to another question, graduate unemployment is an international issue, not just one for the UK. There has also been an uplift in the United States, which we think of as possibly among the most dynamic economies in the world. Precisely because there is technological change, we need to help young people and support them through it. Policy has to catch up with the discussion taking place among young people themselves, because they are very alive to this issue, and they are evaluating their employment choices in terms of what they think will happen in the labour market and which jobs will be sustainable through this period of significant technological change.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  I thank my hon. Friend for his deep interest in this issue. I have visited his constituency, and I give a warm welcome to the apprentices from Peterborough who are in the Chamber today. He asked about supply chains and small and medium-sized businesses. Those businesses will benefit from the hiring bonus for a young apprentice, which is why the Federation of Small Businesses has welcomed this package, describing it as a “game changer” and a “decisive step forward”.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  The hon. Member raises an important point. The issue of youth inactivity does not start at the age of 16; it often starts well before that. The reforms to the SEND system announced by my right hon. Friend the Secretary of State for Education very recently are really important in that regard, and we want the maximum opportunity for people. The last thing that we want is for people with special educational needs to be written off from the labour market; there has been too much of that in the past. Part of the package that I have outlined today is not about helping people into work then forgetting about them, but about supporting them once they are in a job so that we can get job retention and give young people the maximum chance of success.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  The hon. Gentleman opposes the changes that we made to national insurance, but he neglects to mention that employer national insurance contributions are not required for employees under the age of 21, unless they are earning more than £50,000 a year. He opposes those changes while supporting extra expenditure on the NHS. As I have said to him a few times, if his party supports extra expenditure, it really has to support revenue-raising measures to fund it. Young people will have heard the hon. Gentleman dismiss the changes that I have set out today; in fact, they will have heard him say that if he was asked to choose between management courses and young people, he would choose management courses—that is now the established position of the Liberal Democrats. I think that many people would be surprised to hear that in some years, most apprenticeship expenditure has gone on those over the age of 25 who are already in work. We have made a choice; we have chosen young people, and for good reasons. We have chosen them because of the scarring effects of youth unemployment, which I mentioned in my statement, and we now have on record that both the Conservative party and the Liberal Democrats are opposed to our prioritisation of young people.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  I think employers want to do the right thing—they want to give young people a chance. My hon. Friend asks whether the incentives can be stacked, and the answer is yes. For example, if a small or medium-sized enterprise wants to take on a young apprentice who has been unemployed and on universal credit for six months or more, it can claim both the £2,000 apprenticeship incentive and the £3,000 hiring bonus. That sends a strong signal to business, and it is why the Federation of Small Businesses has called this a game-changer, just as my hon. Friend did. It sends a strong signal about giving young people a chance, which is exactly what I think small and medium-sized businesses want to do.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  I do not need any convincing about how great a city Glasgow is, and I will be going there very soon. My hon. Friend asks what this announcement will mean to young people in his constituency and the city of Glasgow. The hiring bonuses I have announced today will be available all over the country, as will the subsidised job—25 hours a week at minimum wage rates for six months for young people who have been unemployed for 18 months or more—precisely to give young people not just a wage but the sense of pride and purpose that comes with having a job. I hope that that gives hope to the young people in Glasgow. It is hope that we need to give to young people all around the United Kingdom.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  It will apply to young people between the ages of 18 and 24. The hiring bonus will be available from this summer, and we will look at having a retention mechanism so that people are not hired one day and let go the next.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  I thank my hon. Friend for drawing attention to the record of the last Labour Government. I have described this as a new deal for new times, and it does adapt some of the lessons that we have learnt in the past to today’s very changed labour market. She mentioned the importance of locally-led work. It is true that local labour markets differ, and I want to work closely with local authorities and elected mayors on this agenda, because I think that they all want the best for the young people in their area. The Connect to Work budget, for example, is devolved for the next few years, with considerable flexibility for local leaders in relation to how they use the funding.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  I think that the statement offers hope to young people throughout the United Kingdom. I look forward to a positive and close working relationship between the UK and Welsh Governments on this issue, because I believe that both Governments share a desire for young people, in Clwyd North and everywhere else in the country, to have the best start in life. I think that, for example, the £3,000 hiring bonus and the jobs guarantee for the long-term youth unemployed, which are UK-wide initiatives, can help people in my hon. Friend’s constituency and offer hope that there is a solution to the scarring effect of leaving young people to fester in long-term unemployment, which is not good for them and not good for the country either. [ Official Report , 25 March 2026; Vol. 783, c. 3WC.] (Correction)

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  I have a lot of respect for the right hon. Gentleman; I walk past his picture every morning. He was responsible for a major reform to the welfare system with the introduction of universal credit, but after that his party stopped reforming the system. We are seeing the costs of that, particularly with what has happened in the last few years. On the Work programme, I am happy to look at any successful programme to help people into work. We have more than one of these programmes in the Department, and they should all be evaluated. The right hon. Gentleman makes an important point; we need to get support to people to overcome the barriers to get into work. With regard to national insurance, as I have said, all these things are costs for business, but this is not a new problem. This is a deep-rooted, long-term problem, and we need new answers to it. That is why I have brought forward this package today.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  I fear that the hon. Lady’s response was written without her listening to a word in the statement. She has confirmed that the Conservative party not only bequeathed us the problem, but has learned nothing about how to tackle it. There was no statement of responsibility, no statement of regret and no apology for the record on youth apprenticeships—in fact, she defended cutting youth apprenticeship starts. It is a continued pretence that somehow all of this started just two years ago. The hon. Lady asks where the funding to help young people comes from. It comes from stable management of the economy—something that the Conservatives know nothing about and that we have practised for the past two years. Young people, at whom all of this is aimed, will have heard her disparage efforts to get them into work and to give them more opportunity. They will have heard her dismiss our changes, which will boost youth apprenticeships. They will have heard her pretend that we can somehow wish all this away with tax changes. That proves that the Conservatives have learned nothing from their disastrous management of the economy. They will have heard her say that the package does not offer young people anything, when we have announced a plan to give them a new deal with more jobs and more apprenticeships. That is the difference between our approach and theirs. I want to give young people in this country opportunities to get skills, to get a job, to get off benefits and to build a better life for themselves. That is much better than kicking the ladder away and leaving the system unchanged, which is what the Conservatives did. How does the hon. Lady explain the number of NEETs rising by a quarter of a million in the last three years in which they were in power? How does she explain their lack of action to deal with it? When it comes to welfare, what I have said today is very clear and simple: the best means of welfare reform is to put work and opportunity at the heart of the system, and that is what we are doing with this plan.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  Yes, of course. I want to work with the Scotland Office, the Scottish Government and anyone who can make an impact. I visited the Bellshill jobcentre in central Scotland just before Christmas. I was told by the area manager that over 40% of the young people on her caseload were on what was called the “health journey”. That should bring us up short. It should tell us and warn us about the stickiness and the long-term effects of a young person being off long-term on sickness benefits. We have to do more to get opportunity to those young people and help them into work. I hope the package I have brought forward today can help us to do that.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  Once again, the Liberal Democrats speak against the prioritisation of youth. We are for training throughout the system and throughout the age range, but we have to make a decision about where to prioritise it with a public budget. I have unashamedly made the decision to prioritise young people, and I think that is the right thing to do.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  My hon. Friend is right. That ratio of 1:8 is too high, and it grew a lot in the last few years. She asks about discussions with young people, and she makes a really important point. When I talk to young people, they tell me that they want to work and make the most of themselves; they just need a platform that will help them. In every part of the programme that we have brought forward today, whether it is the apprenticeship changes, the help for the long-term unemployed, the short apprenticeship courses or the hiring bonus, the motivation that I have had is to give young people a platform on which to stand and take the next step in their lives.

• 17 Mar 2026 · Youth Unemployment · Hansard source

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  My hon. Friend says that young people deserve support; I believe that with the right support, young people want to work and to make the most of their life. He asked how people in his constituency would be helped. They could be helped through the hiring incentives that I have announced, and through the hiring bonuses that will allow small and medium-sized businesses to hire a young apprentice. The young unemployed in his constituency will be helped, because we are offering hope, ensuring that they get a chance, and offering the sense of pride, purpose and dignity that comes with having a job.

• 9 Mar 2026 · Topical Questions · Hansard source

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  We are all going to have busy diaries after this session. I pay tribute to the Cornish hospitality sector. My hon. Friend is right that those are great opportunities for young people, and I will make sure she gets a meeting with someone.

• 9 Mar 2026 · Topical Questions · Hansard source

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  The hon. Member is right to point to the disparity of information that there sometimes is for apprenticeships compared with university courses. It is something that we need to address by improving the information available and ensuring that young people embarking on an apprenticeship are treated with just as much esteem and respect as those who undertake a university course. Information is very much part of the changes that we are pursuing.

• 9 Mar 2026 · Topical Questions · Hansard source

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  I thank my hon. Friend for his question. I am very happy to make sure that he gets a meeting with me or another Minister in the team.

• 9 Mar 2026 · Topical Questions · Hansard source

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  I appreciate the value of skills bootcamps. They can play an important role in the mix of policies we are talking about today. I hear the representations the hon. Lady has made for more funding. All I would say to her and her party is that if we have more funding, I hope they support whatever revenue-raising measures that have to be put in place for it.