Oral Answers to Questions

Debate between Alistair Carmichael and Angela Watkinson

Wednesday 14th January 2015 Commons Chamber

[Dame Angela Watkinson (Hornchurch and Upminster) (Con)]

3. What assessment he has made of the potential effect on businesses in Scotland of the removal of the requirement for employers to pay national insurance contributions in respect of employees under the age of 21 and apprentices under the age of 25.

[The Secretary of State for Scotland (Mr Alistair Carmichael)]

Abolishing employer national insurance contributions for under-21s is expected to help Scottish businesses save £45 million and support jobs for 138,000 young people. Extending that to apprentices under 25 will help about 31,000 apprentices in Scotland, and it will be more than £1,000 a year cheaper to employ an apprentice earning £16,000.

[Dame Angela Watkinson]

Is it correct that the employment level in Scotland rose to a record level in the last financial quarter—even higher than the UK average? Does that not demonstrate that the Government’s long-term economic plan is working across the United Kingdom and especially in Scotland?

[Mr Carmichael]

Indeed, my hon. Friend is absolutely right, and that is especially true in areas that are hardest to move, such as youth unemployment, which is down by 5.1% over the past 12 months. Of course it is still too high and of course there is still a great deal to do, but those figures and the ones that she has just mentioned demonstrate that the Government’s plan is right, that it is working and that we should not put it at risk by handing power to those who would just borrow, spend and play games for political ends.