Cut national insurance for under-25s to create jobs, Milburn report to say
Summary
Alan Milburn’s review of youth unemployment is expected to recommend gradually reducing employers’ National Insurance costs for workers aged 21 to 24, beginning in retail and hospitality. It will also propose changes to benefits for people under 25 and a legal guarantee of a job, training or employment support.Key Facts
- The review is due to be published on Tuesday after a year of work.
- Milburn is expected to propose raising the employer National Insurance threshold for workers aged 21 to 24 from £5,000 to £10,000 over five years, when public finances allow.
- An immediate National Insurance cut for this age group would cost an estimated £5.1 billion, according to the Resolution Foundation.
- The review is expected to recommend ending under-25s’ access to the health element of Universal Credit and to Personal Independence Payment.
- Milburn is expected to recommend a legal guarantee of a job, training or employment support, with possible benefit losses for people who refuse help.
- Nearly one million people aged 16 to 24 in the UK are not in employment, education or training.
- The government spends £22 billion a year supporting young people who are economically inactive, according to Milburn.
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