Shadow minister urges Budget measures to boost youth employment

Shadow work and pensions secretary Helen Whately has called for the government to introduce specific actions in the upcoming Budget to support businesses in hiring more young people. She highlighted the scale of the issue, noting that approximately one million young people are currently not in employment, education or training. Whately addressed the BBC on Sunday, asserting that the Labour party has harmed job prospects for the younger generation, citing a rise of over 174,000 in youth unemployment.

Youth unemployment reached an 11-year high in the middle of this year, while the number of young people not in employment, education or training briefly exceeded one million before declining. This period followed an independent review by the Department of Health and Social Care into mental health conditions, including ADHD and autism. The review, published on 8 October, linked a steep increase in diagnoses to the rise in youth unemployment, particularly among children and young people.

Whately described the experience of young job seekers as incredibly distressing, referring to the endless rejections they face from job applications. She argued that while the creation of more jobs is essential, the current welfare system fails to support individuals struggling with mental health and neurodiversity. The shadow minister pointed to Personal Independence Payments, a tax-free benefit for those with long-term physical or mental health conditions, stating that recipients often fear losing their benefits if they take up work or training.

She contended that the welfare system deters people from working, even though they would be better off in employment. Whately rejected the notion that young people are too soft, insisting that the primary issue is the lack of available jobs. However, she maintained that a strong message is needed, encouraging young people to focus on their capabilities rather than their limitations. She claimed that many young people with conditions such as ADHD are advised to sign on to benefits as soon as they start school.

These comments follow a report by City AM on 14 October, which revealed that Chancellor John Healey is drawing up measures to reduce the cost of hiring under-25-year-olds for the Budget. The government aims to tackle the youth unemployment crisis and ease pressures on businesses. Sources indicated that this move to address the number of young people not in employment, education or training by reducing hiring costs is likely to feature in Healey’s statement on 28 October.