Simon Wolfson, the Conservative peer and chief executive of Next, has warned that government policies are causing a 'crisis' in youth unemployment. He told the BBC that increases in employer national insurance contributions and the minimum wage have made it harder for young people to find work.
Lord Wolfson noted that two years ago, Next received around 10 applications for every store job; now it receives 19. 'That doubling of applicants for shop jobs is indicative of just how big the crisis is in youth unemployment at the moment,' he said.
The Treasury dismissed his argument, stating that raising the minimum wage had increased pay for around 200,000 workers. A spokesperson said: 'Cutting wages for the lowest-paid during a time of global uncertainty is not the answer.' Chancellor Rachel Reeves also rejected the idea of reducing wages, emphasising that low-income workers struggle most with rising costs.
Lord Wolfson also criticised plans to ban zero-hours contracts, arguing that retailers need flexibility to manage seasonal demand. He suggested the government should focus on economic growth by relaxing planning laws, reforming energy policy, and improving transport.
