Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment his Department has made of the effectiveness of targeted employer National Insurance contributions relief in supporting youth employment.

The Government recognises the important role that employers play in providing young people with their first step into work. Businesses can therefore claim employer National Insurance contributions reliefs for employees under 21 and apprentices under 25, meaning no employer NICs are paid on their earnings up to £50,270.

HMRC published an evaluation of these measures in October 2023. It found that they reduce employment costs for employers and identified some evidence of a positive impact on youth employment, while noting that recruitment decisions are influenced by wider factors.

The Government has also announced £2.5 billion of investment in the Youth Guarantee and the Growth and Skills Levy over the next three years, supporting almost one million young people and helping to deliver up to 500,000 opportunities to earn or learn.