The unemployment rate is 4.7%—well below the historic high of 11.9% in 1984—but no one should ever be complacent about unemployment, especially considering the significant jump in economic inactivity under the Tories. That is why I am pleased to tell the House that employment is up by 725,000, to 75.3%, since July 2024 and inactivity is down by more than the rise in unemployment—a reduction of 400,000.
On the House of Commons dashboard, the data for my constituency shows that universal credit claims increased dramatically by 20% in just one month. Claimants increased by over 2,000—from 10,344 to 12,415—from May to June this year. Given this recent increase in economic inactivity, what evidence does the Minister have that the Government’s employment support programmes are successfully moving people from out-of-work benefits into sustained employment?
The Conservative Government unified in-work and out-of-work benefits, so universal credit is also an in-work benefit. As I mentioned some moments ago, the legacy of the Tories on economic inactivity is now seeing a welcome reversal, with economic inactivity down by 400,000.
As my hon. Friend knows well, improved employment is at the heart of our approach to child poverty, and that is why reductions in economic inactivity and improvements in employment will be part of our child poverty strategy that is to be published very soon.
This Labour Government believe that every young person should be able to fulfil their potential. Unlike Conservative Members, we will not stand by while almost 1 million young people are not in education, employment or training. Our Get Britain Working trailblazer in the north-east is already helping young and neurodivergent people with supported work and training placements, including in Hexham. The local jobcentre is also working with Newcastle United Foundation to help young people build their confidence and develop their skills so that they and our country can look forward to a brighter future.
Given the significant investment, the DWP has partnered with BAE and the nuclear sector to promote a variety of career pathways, including roles across its supply chains. We are also working within BAE’s new “The Bridge” hub in Barrow—a collaborative space offering employment advice and support from BAE Systems and a range of local employers and organisations to connect talent with locally based jobs. Further, in Barrow, our youth hub is run in partnership with Brathay Trust and Project John, supporting young people holistically to meet employers and develop their talents.
Health and Disability Benefits: Spending Estimate
NEETs: Croydon East
Welfare Fraud
PIP Application Process
Poverty Reduction
Universal Credit: 16 to 24-year-olds
Data Sharing: Local Authorities
NEET: Young People
Pension Credit Uptake
Remote PIP Assessments
NEET: Young People
Children in Poverty
Employment: Trailblazer Programme
Topical Questions
20 of 151 shown
Tim Farron (Westmorland and Lonsdale) (LD)
Liberal DemocratWestmorland and Lonsdale
Does the Minister accept that the Government’s increase in national insurance contributions has had a negative impact on employment in communities such as ours? Cumbria Tourism assesses that 37% of its businesses have cut staff as a consequence and 33% are freezing recruitment. Is it possible that the Government will get less from this tax rise than they expect, and that in doing this they are doing grave harm to the Cumbrian tourism economy and many other parts of our economy?
I speak to many businesses, and since coming into office, the Secretary of State and I have totally changed our approach with employers. That new approach includes a partnership with UK Hospitality, providing specific employment support to get into hospitality, and a hospitality passport so that people can evidence their qualifications, which we and UK Hospitality believe can help those people who really need a chance in life to get a good start in the hospitality sector.
After visiting businesses in Newport East this summer, I know that there is a high demand for companies—including Thames Valley Construction, which I visited—to train more construction workers locally, and I was pleased to see the Government make the announcement in the summer on training 40,000 more people. Can Ministers tell me what conversations they are having with the Welsh Government on working together to do this?
We will not build the much-needed 1.5 million homes without bringing people into the construction sector. That is why, as part of our new approach for employers, we have partnered with the construction sector and set up specific schemes with them. We are also talking directly across Whitehall with other Government Departments and with the sector about moving people into great jobs in construction.
Thank you, Mr Speaker. It is good to see you back after the summer recess.
The hon. Lady can fling around the stats all she likes, but the facts are clear and bleak. Under her watch, youth unemployment has gone up; nearly a million young people, and rising, are not in work or education, including over 40,000 more young women. A generation of brilliant young people are going on to benefits, rather than into work. The Government’s jobs tax and their unemployment rights Bill were guaranteed to reduce opportunities for young people. We have had the winter fuel U-turn and the welfare U-turn; why not a U-turn to help young people?
The damage was done to the coming generation under the Tories. We failed the pandemic generation, who put a shift in—they stayed at home and gave up their social lives to save older loved ones. I could talk at length about our youth guarantee, our trailblazers and the work we are doing to expand youth hubs, but actually, it sticks in my craw to hear the Conservatives, who failed this generation, harp on about it from that Dispatch Box.
For too long, previous Governments did not take into account the realities of life in communities across my constituency, which is incredibly sparsely populated and quite rural. The youth guarantee can and will make a considerable difference in communities all across it, from the Tyne Valley all the way out to the north Tyne and into Callerton and Throckley, too. Will the Secretary of State work with me to ensure that we continue to support young people in all those different, disparate communities to access the skills and opportunities they deserve?
My hon. Friend is right that people have different needs in different parts of the country. We need to tailor employment support to the needs of individuals, so alongside measures like our youth guarantee, we are overhauling our jobcentres to provide that more personalised support and introducing measures such as mobile jobcentres to provide better help in rural areas.