Conservatives propose halving youth employment tax to spur job growth
The Conservative Party plans to cut employer National Insurance for workers under 25 by half, aiming to boost entry-level jobs.
At a forthcoming policy launch, Kemi Badenoch announced a Conservative plan to halve the employer National Insurance contribution for staff aged 21 to 24, saving firms roughly £1,545 per young employee each year. The initiative, budgeted at £2.3 billion, is presented as a response to a rise in youth unemployment since Labour took office, which Conservatives say now affects about 750,000 young people. Alongside the tax cut, the package proposes stricter rules on benefit claims for recent school leavers and individuals with mild mental-health conditions.
Conservatives claim Labour's higher youth minimum wage, expanded employment rights, and increased National Insurance have made hiring young workers less attractive. Labour’s shadow chancellor, Andrew Griffith, criticised the measures as insufficient and blamed Labour policies for the problem. The plan will be funded by cuts elsewhere in government spending and will not apply to workers earning above £50,270.
Why it matters
Cutting youth employment taxes could reshape hiring practices and affect millions of young workers' prospects.
How this story developed
- Sep 3 Richard Tice condemns Chinese imports while Reform UK merch made in China is on sale
- Sep 4 National Rally leader Jordan Bardella delivered an English speech at Reform UK’s gathering, emphasizing tighter ties with the British party and joint immigration control.
- Sep 4 Reform UK invited Bardella to speak at its Birmingham conference.
- Sep 6 West Midlands Police have issued a call for the protester to come forward to assist their inquiry.
- Sep 7 The memorandum was signed, moving the idea from conference discussion to a formal agreement.
- Sep 18 Liberal Democrat members say the party has stalled since its 2024 election surge and aim to adopt a more aggressive tone at this weekend’s conference.
- Sep 22 YouGov's latest seat-by-seat model indicates Reform UK would secure just 123 seats if a general election were called today, a sharp drop from a similar poll a year ago. Labour is forecast to lead with 241 seats, followed by the Conservatives at 130, while the Liberal Democrats hold steady at 71. The results point to the first hung parliament since the 2010 coalition. Reform also appears to be losing its high-profile MPs Robert Jenrick and Suella Braverman back to the Conservatives. The party's decline follows recent scandals involving alleged off-the-books polling and the suspension of aides Dan Jukes and James Orr, prompting a Met Police investigation.
- Sep 25 A new YouGov poll shows Reform UK level with the Conservatives and behind Labour.
- Sep 27 The party has moved from internal frustration to publicly unveiling a health‑and‑economy platform at its conference.
- Sep 28 Lee Anderson announced a “whip round” to raise funds for the woman struck with a walking stick.
- Oct 4 Kemi Badenoch opened the Conservative conference by framing the Tories as a common-sense party, unveiling pledges on tighter welfare, prison expansion and free childcare for high-earning families.
- Oct 5 Badenoch pushed to drop the £100,000 childcare tax cap at the conference.
- Oct 6 Announced a cut to employer National Insurance for 21‑ to 24‑year‑olds from 15% to 7.5%.
In this story
Related stories
50 in this thread