National Insurance (Contributions) Bill

Philip Hollobone Excerpts

Tuesday 10th December 2013 Commons Chamber

[Mr Philip Hollobone (Kettering) (Con)]

I congratulate my hon. Friend on introducing this proposal. How much will it cost and how many young people will it help?

[Mr Gauke]

I am grateful to my hon. Friend for his question. The details of the costings can be seen in the autumn statement document published last week. The initial cost is £460 million and that then increases beyond that. All those working who are under the age of 21 will be able to benefit from it, although there is one caveat that I wish to make in a few moments.

This is a step in the right direction. It is striking that this Government came to office inheriting an increase in NICs and we have not only increased the thresholds for paying employers’ NICs, but we have introduced the employment allowance which gives £2,000 off for businesses in respect of employers’ NICs, and now we are exempting those under the age of 21. All this will help to create employment.