Badenoch pledges to halve employer National Insurance for under-25s
Conservative leader Kemi Badenoch has announced a policy package aimed at reducing youth unemployment, which she says is a crisis affecting more than one million young people. The centrepiece is a pledge to halve National Insurance contributions paid by employers for workers aged under 25, which Badenoch argues will make hiring young workers more financially attractive. She has also promised cuts to inheritance tax and a major overhaul of the benefits system, warning that Britain faces an economic emergency requiring urgent action to reduce borrowing and restore growth.
The proposal would reduce employer National Insurance from 15 per cent to 7.5 per cent for workers aged 21 to 24, saving businesses an average of £1,545 per young employee. The measure will cost £2.3 billion annually and will be funded through spending cuts as part of a "Conservative Savings Plan" to be published today. Badenoch has also signalled plans to restrict young people's access to unemployment benefits and prevent those with mild mental health issues from claiming sickness payments, framing these changes as necessary "tough love" to address what she describes as Labour's economic mismanagement and mounting public debt.
- Tories pledge to halve employer National Insurance for workers aged 21-24.
- Policy aims to address youth unemployment affecting over one million young people.
- Inheritance tax cuts and benefits reform also planned before election next year.
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Kemi Badenoch is the leader of the Conservative Party, which is currently in opposition after Labour won the 2024 general election. As opposition leader, she outlines policies as alternatives to those of the current Labour government.
Employer National Insurance is a tax that businesses pay to the government based on their payroll. Reducing this tax makes hiring workers cheaper for companies, and the theory behind such policies is that lower employment costs encourage employers to hire more people.
Youth unemployment affects hundreds of thousands of young people in Britain and is considered important because it impacts both their individual prospects and the economy's growth potential. This makes employment policy for younger workers a significant political and social topic.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Halving National Insurance for young workers addresses a real structural barrier to youth employment by reducing hiring costs. With over one million young people unemployed, a £2.3-billion tax incentive to make young workers cheaper to employ is pragmatic and market-friendly, giving businesses financial reason to hire and giving young people the experience they need for career progression. The policy is funded through spending cuts rather than other tax rises, making it fiscally responsible.
The case against
Whilst well-intentioned, the policy risks subsidising employers for hiring they would do anyway, wasting £2.3 billion without creating net new jobs. That money would be better spent on education, training, and apprenticeships that address the actual skills gaps and regional economic challenges underlying youth unemployment. Simultaneously restricting young people's access to benefits sends a harmful mixed signal and risks pushing vulnerable people into destitution without tackling the root causes of joblessness.
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Originally published by Daily Mail as “Tories to slash jobs tax to get young back into work – with Kemi offering a new ‘rescue package’”.