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Tesco, M&S and Sainsbury's bosses urge chancellor to raise National Insurance threshold to save young people's jobs

Simon Roberts, Sainsbury's chief executive, was among retail bosses who warned chancellor John Healey that cutting the NIC threshold to £5,000 has driven a sharp decline in jobs among young and part-time workers.
Simon Roberts, Sainsbury's chief executive, was among retail bosses who warned chancellor John Healey that cutting the NIC threshold to £5,000 has driven a sharp decline in jobs among young and part-time workers.

Bosses from Tesco, Marks & Spencer, Sainsbury's, Costa Coffee and the Co-op met chancellor John Healey at No 11 on Tuesday to demand he partly reverse his predecessor Rachel Reeves's hike in employers' National Insurance contributions. Stuart Machin of M&S and Sainsbury's chief Simon Roberts warned that reducing the NIC threshold from £9,100 to £5,000 has directly driven a sharp decline in retail employment among young and part-time workers. Companies are said to have left the meeting in an upbeat mood, with Healey described as receptive. A separate CBI poll of 682 firms found only 15% were optimistic about taking on new staff, a fall from 24% the previous year.

An estimated 981,000 young people aged 16 to 24 are currently neither studying nor working, a figure that has risen by 30,000 on the same period in 2025.

Retailers are calling for the NIC threshold to be lifted to £6,000, saying the change would boost employment and help keep high-street prices in check.

MoreThe GuardianUK high street bosses urge chancellor to cut cost of employing young peopleThe SunYouth minimum wage hikes are costing people jobs, Kemi Badenoch warnsLowestoft JournalCould halving employers’ NI for young people help firms in the East?
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