Employers' Contributions: Young People

(asked on 26th October 2026) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of halving employer national insurance contributions for 21-24 year olds up to £50,270 on levels of youth unemployment in North Yorkshire.


Answered by
James Murray Portrait
James Murray
Financial Secretary to the Treasury and Paymaster General
This question was answered on 3rd November 2026

The Government acknowledges that there are significant challenges for young people entering the world of work. That is why the Government has announced £2.5 billion of investment in the Youth Guarantee and the Growth and Skills Levy over the next three years, supporting almost one million young people and helping to deliver up to 500,000 opportunities to earn and learn.

Businesses can already claim employer National Insurance relief for employees under 21 and apprentices under 25, with no employer National Insurance due on earnings up to £50,270. These reliefs were estimated to be worth
around £2.5 billion in 2025–26.

The Chancellor makes decisions on tax policy at fiscal events, and does not routinely comment on proposals.

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