Boost youth jobs by cutting employers' national insurance, MPs urge
A select committee says it has heard "overwhelming evidence" that rising employment costs are reducing training and job vacancies.
MPs have urged the government to cut employers’ national insurance contributions for staff under the age of 25, arguing that the move could help protect training and job opportunities for young people.
The call comes from a select committee that said it had heard “overwhelming evidence” that higher employment costs are discouraging employers from taking on new workers and reducing the number of available vacancies. According to the committee’s findings, the pressure on businesses is also affecting training provision, which could make it harder for younger jobseekers to gain a foothold in the labour market.
The recommendation reflects growing concern among parliamentarians about the prospects for young people entering work, particularly if employers respond to rising costs by scaling back recruitment plans. By focusing on national insurance, the committee has pointed to one of the main costs businesses face when hiring staff.
The proposal would apply to employers hiring people aged under 25. The committee said cutting this cost could help make those workers more attractive to firms at a time when employment decisions are under strain. The argument is that lowering the tax burden on employers could encourage more vacancies and support training opportunities that might otherwise be reduced or delayed.
The report adds to an ongoing debate over how best to support youth employment without placing further pressure on businesses. The committee’s comments suggest members believe the current cost environment is already influencing decisions on hiring and training, and that younger workers may be among those most affected.
The article is based on a monitored public feed and attributed to BBC Business.
Source: BBC Business - https://www.bbc.co.uk/news/articles/cy45p77l3zwo?at_medium=RSS&at_campaign=rss
