The independent review calls for a phased five-year reduction in employer National Insurance contributions for staff aged 21 to 24, initially focusing on retail and hospitality before expanding. Alongside tax incentives, Milburn advocates stripping under-25s of access to personal independence payments and the health element of Universal Credit. To prevent long-term detachment from work, the strategy combines state-subsidised wages for small businesses with a legal guarantee of employment support backed by benefit sanctions. In response to youth unemployment pressures, Work and Pensions Secretary Pat McFadden noted plans to expand existing subsidised job guarantees for young claimants.
Key points
Employers would see hiring costs fall through phased National Insurance cuts beginning in…: Employers would see hiring costs fall through phased National Insurance cuts beginning in retail and hospitality.
Young people under 25 would face stricter welfare conditions, including losing benefits i…: Young people under 25 would face stricter welfare conditions, including losing benefits if they refuse guaranteed employment support.
The government intends to extend its subsidised jobs guarantee scheme for young adults re…: The government intends to extend its subsidised jobs guarantee scheme for young adults receiving Universal Credit.
Sources checked by our analysis pipeline: 1
- Published
National Insurance (NI) paid by businesses on workers aged under 25 should be gradually lowered to encourage companies to create jobs for young people, a major review of youth unemployment will say.
A report by former Labour minister Alan Milburn will suggest the government should reduce NI costs over five years for people aged between 21 and 24 years old, starting in retail and hospitality.
Under Sir Keir Starmer, the government raised NI for firms. Milburn will say the number of young people not in employment, education or training - known as Neets - was not started by the NI rise.
But shadow work and pensions secretary, Helen Whately, said the government should "just stop doing the taxing".
The independent report, which has been in the works for a year and will be published on Tuesday, will also make recommendations on reducing the UK's benefits bill.
Milburn has said the government spends £22bn a year supporting young people who are economically inactive. There are nearly one million so-called Neets aged between 16 and 24 in the UK, according…
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