Badenoch halves employer National Insurance for young workers in bid to fix 'graduate recruitment crisis'
From the Newshound archive · first published 7 October 2026.
Nearly 981,000 young people are currently not in education, employment or training — a 12-year high — with youth unemployment up 174,000 since Labour took office.
Kemi Badenoch has pledged to cut employer National Insurance from 15 per cent to 7.5 per cent for workers aged 21 to 24, with the estimated dynamic cost put at £2.3 billion. Close to a million young people are currently out of education, work or training — the highest figure in 12 years. Badenoch described the plan as "fiscally credible" and said a "savings plan" will detail how it is funded through reductions to welfare, the civil service and overseas aid.
The gross static cost is £3.25 billion, falling to £2.3 billion once the additional tax receipts and lower universal credit payments generated by the policy are taken into account.
Badenoch argues the cut would trim £1,545 from the NI bill employers face for each young worker they take on, bringing 'tens of thousands' off benefits and into employment.
She attributed the 12-year high in youth unemployment to Labour's NI increases and minimum wage rises under Rachel Reeves.
