MPs Urge Cut to Employer National Insurance for Under-25s

A group of MPs has urged the government to cut employer national insurance contributions for all workers under 25 to improve job opportunities for young people, according to BBC. The Work and Pensions Committee said it heard overwhelming evidence that rising employment costs, including employer NI, were reducing training and vacancies, especially in retail and hospitality, where younger workers are heavily employed. The committee said more than one million 16- to 24-year-olds are not in education, employment or training, and described that as a travesty. It also said employer NI now applies at 15% on annual earnings above £5,000 for non-apprentices aged 21 to 24, while businesses pay no employer NI for employees under 21 or apprentices under 25 unless their pay is above £50,270. BBC reported that the committee also criticised policy contradictions around benefits cuts and apprenticeships, and chair Debbie Abrahams called for a unified youth employment strategy.