Conservative Party pledges to halve employer National Insurance for young workers

The Conservative Party has pledged to halve employer National Insurance contributions for workers aged 21 to 24 if they win the next election. The proposal would reduce the flat rate for businesses from 15% to 7.5%.

Conservative leader Kemi Badenoch described the plan as “fiscally credible,” noting that the party intends to publish a savings plan to fund the initiative. The estimated dynamic cost of the policy is £2.3 billion by 2029-30, accounting for increased tax receipts and reduced spending on universal credit.

The policy aims to address a “graduate recruitment crisis” and increase employment among young people. This follows recent party proposals regarding unemployed individuals under 25, which included restrictions on claiming universal credit for those who have not worked continuously for at least six months. According to the Office for National Statistics, approximately 981,000 young people in the UK were not in education, employment, or training between April and June this year.