Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of extending employer National Insurance contribution relief to (a) employees aged under 25 and (b) individuals returning to work from welfare on levels of (i) employment and (ii) job creation in the hospitality sector.

This government is committed to supporting young people to earn or learn. That is why the Chancellor has recently announced that we will offer a guaranteed job to young people on Universal Credit who are unemployed for over 18 months. This forms a key part of the government’s Youth Guarantee, building on existing employment support and sector-based work academies, with more details to come at Autumn Budget.

We are committed to supporting all people on welfare who can work into work. At the recent Spending Review, we increased funding for employment support to over £3.5 billion by 2028-29, helping people to access the skills they need to progress, tackling inactivity and ensuring more people are in better jobs.

There are a wide range of factors to take into consideration when introducing a tax relief. These include how effective the relief would be at achieving the policy intent, how targeted support would be, whether it adds complexity to the tax system, and the cost.

The Government keeps all taxes under review as part of the policy making process. The Chancellor will announce any changes to the tax system at fiscal events in the usual way.