More than 80 leading UK high street retailers have issued a stark warning to the government, claiming current tax policies and “red tape” are actively “pricing out” firms from hiring young workers.
Bosses from major chains including Tesco, Sainsbury’s, and John Lewis are among those who have written to the Prime Minister.
Coordinated by the British Retail Consortium (BRC), their letter asserts that government policies are “making it harder to hire young people”, urging a re-evaluation of national insurance, national living wage changes, and employment rights to foster entry-level positions.
This intervention follows official figures released two weeks ago, which revealed that the number of young people neither working nor learning has surpassed one million for the first time since 2013.
The Office for National Statistics (ONS) reported 1.01 million individuals aged 16 to 24 were classified as “Neets” – not in employment, education, or training – between January and March.
Alan Milburn, who is spearheading the government’s review into the Neets crisis, has cautioned that this figure could escalate beyond 1.25 million within the next five years.
Last week, the Government drafted in former Marks & Spencer chief executive Marc Bolland to help get more young people into work.
On Wednesday, the retail bosses – which also included chiefs at Amazon, M&S and Greggs – said policy decisions have impacted their hiring decisions.
In the letter, they called on the Government to strengthen support for youth employment and bring down the cost of employing young people.
Helen Dickinson, chief executive of the BRC, said: “The message from retail is clear: if Government is serious about tackling youth unemployment, it cannot keep making it more expensive to create jobs.
“Retail and its supply chain account for almost a quarter of all youth employment, making our industry uniquely placed to support young people through flexible, entry-level roles and clear routes for progression.
“But this first step on the ladder is cracking under the weight of Government-imposed costs and regulations.
“Youth unemployment is a challenge that Government and business must tackle together.”
A Government spokesman said: “We are already working in partnership with businesses to tackle youth unemployment and create 50,000 more opportunities for young people as part of our £2.5 billion youth employment support package.
“From this month, we’re rolling out £3,000 payments, covering wages for six months for those out of work long-term, and cutting hiring costs for under‑21s and apprentices.
“We will continue working with businesses to address the challenges set out in the Milburn report and help more young people take their first step into work.”
