Boost youth jobs by cutting employers' national insurance, MPs urge
Summary
A group of UK MPs recommends lowering the tax employers pay on wages for workers under 25 to help more young people find jobs. They say high costs like employer National Insurance contributions make it harder to hire young workers, contributing to many youths not being in school, work, or training (called Neet). The MPs want the government to create clearer, more helpful policies for youth employment.Key Facts
- MPs suggest cutting employer National Insurance (NI) contributions for all workers under 25.
- Over one million 16 to 24-year-olds in the UK are not in education, employment, or training (Neet).
- Employer NI rates rose from 13.8% to 15% in April last year, with the start threshold lowered from £9,100 to £5,000.
- The retail and hospitality sectors, which hire many young people, have been hit hard by increased employer NI costs.
- Employers pay no NI for workers under 21 or apprentices under 25 (unless paid over £50,270), but must pay 15% for non-apprentices aged 21-24 on earnings above £5,000.
- MPs highlighted contradictions in policies, like cutting benefits for trainees that discourage apprenticeships.
- The cost of young people being Neet is estimated at £125 billion a year due to benefits and lost economic output.
- The government says it is working to create opportunities for young people and support education and jobs.
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