Stories

Tue, 21 Jul 2026

Tue, 21 Jul 2026 Boost youth jobs by cutting employers' national insurance, MPs urge

A select committee says it has heard "overwhelming evidence" that rising employment costs are reducing training and job vacancies.

* A group of MPs has urged the government to cut employer National Insurance (NI) contributions for all under-25s to boost job opportunities.
* The Work and Pensions Committee said rising employment costs, including employer NI, were reducing training and job vacancies, particularly for young people.
* Over one million 16-24 year olds are not in education, employment, or training (Neet).
* An employer NI cut for all under-25s would tackle the "travesty" of Neet numbers, the committee said.
* The government has responded by saying it is determined to create opportunities for young people and reform education.
* Critics have argued that the employer NI raise affects workers by limiting job opportunities.
* Some employers have argued that higher minimum wages and taxes are making it harder to hire young people.
* The Institute for Fiscal Studies found no clear evidence that higher minimum wages were a major driver of Neet numbers.
* The committee said there was a "gap" between the government's employment strategy for under-21s and their strategy for under-25s.
* The committee also highlighted policy contradictions, with benefits cuts undermining apprenticeship schemes.
* Chair Debbie Abrahams called for a unified strategy on youth employment to tackle these contradictions.