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MPs urge cutting employer national insurance for under-25s
A UK parliamentary committee says employer NI costs are weighing on training and job vacancies, amid record youth unemployment outside education, work, or training.
A UK Work and Pensions Committee has urged the government to cut employer national insurance contributions for people under 25, arguing that rising employment costs are reducing training and job vacancies, particularly for young people, according to BBC Business.
The committee said more than one million 16 to 24-year-olds are not in education, employment, or training, known as NEET, and it called an employer NI cut for all under-25s a way to address what it described as a major problem.
BBC Business reported that the committee cited changes to employer NI rates, including an increase from 13.8% to 15% and a reduction in the earnings threshold for paying NI from £9,100 to £5,000 per year. It also noted the employment allowance rose from £5,000 to £10,500, and said it has targeted sectors such as retail and hospitality that it says hire young people.
The outlet said the committee warned of policy gaps between the government approach for under-21s and under-25s, and pointed to what it called contradictions in support for people in training versus efforts to expand apprenticeships. BBC Business added that the committee chair Debbie Abrahams said the government needs a unified strategy to tackle the inconsistencies.