Bosses should get tax boost for hiring under-25s to help solve youth jobs crisis, say MPs

BOSSES should get a tax break for hiring under-25s to help tackle the youth jobs crisis, MPs say. Ministers must slash employers’ National Insurance for all workers under 25 in a bid to encourage firms to create more entry-level jobs, according to a cross-party committee. Bosses should get a tax break for hiring under-25s to help tackle the youth jobs crisis, MPs say Credit: Alamy Labour’s Work and Pensions Committee Chair Debbie Abrahams made the recommendation Credit: Alamy The call comes as more than one million young people are currently not in education, employment or training (NEET). MPs said businesses had given “overwhelming evidence” rising employment costs – driven in part by higher National Insurance bills – had led firms to cut back on jobs and training, with young workers hardest hit. Sign up for the Politics newsletter Thank you! They warned the Government’s own policies were working against each other, with companies paying no employer NI on under-21s but facing the tax on most 21 to 24-year-olds. The committee said extending the exemption to everyone under 25 would boost vacancies, especially in retail and hospitality, where many youngsters get their first job. Labour’s Work and Pensions Committee Chair Debbie Abrahams said: “In a challenging environment, businesses need help to meet rising employment costs. “Reducing employer’s National Insurance contributions for under 25s will enable them to take a chance on talented young people.” New PM Andy Burnham has said he wants to put welfare reform and reducing the benefits bill at the heart of his premiership. He said mayors and councils will be given a responsibility to help get Britain’s “lost generation” back into work and has supported more technical education. Most read in The Sun Comment now