Conservatives propose £2.3bn cut to employer national insurance for young workers
The Conservatives have announced a plan to halve employer national insurance from 15% to 7.5% for workers aged 21 to 24, estimated to cost £2.3bn.
In Brief
- •The Conservatives have announced a plan to halve employer national insurance from 15% to 7.5% for workers aged 21 to 24, estimated to cost £2.3bn.
- •The policy aims to address a 'graduate recruitment crisis' and is part of a 'tough love' approach to unemployed under-25s.
- •Young people aged 16-24 without six months of continuous work will be barred from claiming universal credit if the Conservatives win the next election.
Why It Matters
This proposal aims to address the 'graduate recruitment crisis' by reducing the financial burden on young workers, potentially encouraging more employment and reducing reliance on benefits. The policy is part of a broader strategy to incentivize work among the unemployed youth population, which could have significant economic and social impacts.
Key Details
- Age Group
- 21 to 24 years old
- Current Rate
- 15%
- Proposed Rate
- 7.5%
- Estimated Cost
- £2.3bn
- Static Cost
- £3.25bn
- Dynamic Cost (2029-30)
- £2.3bn
Context & Background
The Conservatives have previously increased employer national insurance, which has disproportionately affected young workers. This proposal aims to mitigate the financial burden on young workers and encourage employment.
Original Reporting & Sources
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