Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of increases to employer National Insurance contributions on the ability of businesses to create entry level jobs for young people currently not in education, employment or training.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs, which is available online at: https://www.gov.uk/government/publications/changes-to-the-class-1-national-insurance-contributions-secondary-threshold-the-secondary-class-1-national-insurance-contributions-rate-and-the-empl. The TIIN set out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.

The Office for Budget Responsibility also published the Economic and Fiscal Outlook (EFO) in November 2025, which sets out a detailed forecast of the economy and public finances. The OBR expects that employment levels will rise in every year of the forecast, and that they will be higher in every year compared to March, reaching 35.5m in 2030-31.

The government is committed to supporting young people to earn and learn; that is why we are making more than £1.5 billion available over the Spending Review period for investment in employment and skills support. This includes £820 million for the Youth Guarantee, which features a new Jobs Guarantee that will provide six-month paid work placements for eligible 18- to 21-year-olds, and £725 million for the Growth and Skills Levy, to help support apprenticeships for young people and fully fund SME apprenticeships for eligible people under-25. This support will provide an opportunity for young people to gain the essential skills and experience they need and prevent the damaging effects of long-term unemployment.