UK businesses urge National Insurance cuts for young workers

Businesses in Yorkshire are calling on Chancellor John Healey to reduce National Insurance contributions for employees under the age of 25 in his upcoming Budget. The West & North Yorkshire Chamber of Commerce, representing 5,000 employers, suggested the measure could help address the youth unemployment crisis.

Some business leaders have reported ongoing struggles following increases in employer National Insurance contributions in 2024. Additionally, reports suggest the government may pause a previous Labour pledge to equalize the minimum wage for 18-to-20-year-olds with the national living wage. This potential delay aims to mitigate concerns that rapid wage increases and rising employment costs could lead to job losses among younger workers.

Further requests for relief include allowing further education colleges to reclaim VAT to address funding disparities. The government is currently reviewing the number of young people not in employment, education, or training.