Employer NI Contributions for Under-25s Should Be Cut, MPs Urge

The Work and Pensions Committee has recommended cutting employer National Insurance (NI) contributions for all under-25s to enhance job opportunities. Currently, over one million individuals aged 16 to 24 are not in education, employment, or training (NEET). In April 2022, the employer NI rate increased from 13.8% to 15%, while the threshold for contributions decreased from £9,100 to £5,000. The committee highlighted the impact on sectors like retail and hospitality that typically employ young workers, stating a unified strategy is required to address youth employment challenges.