How could Mark Price's call for NI cuts affect the cabinet?
Cabinet may review proposal to cut NI contributions for young workers Mark Price has urged the Government to introduce a substantially lower employer National Insurance rate, or a 'break,' specifically for hiring people aged between 21 and 24. This proposal aims to make it more affordable for businesses to take on less experienced workers and address the crisis of young people not in education, employment, or training (NEETs). The Cabinet, as the executive body, would need to review this policy input to determine its feasibility and potential impact on employment costs.
- Effect
- Mixed
- How direct
- Brind's reasoning
- When
- Within weeks
- The story
- Gone quiet
How it reaches cabinet
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Mark Price urged the government to cut employer National Insurance contributions for young workers. He suggested a substantially lower rate or 'break' for hiring individuals aged 21 to 24. Price noted that current high National Insurance payments and the minimum wage have eroded any price difference between younger and more experienced employees.
The full event1independent outlet -
As the executive body through which the Government implements its policies, the Cabinet would be responsible for reviewing and deciding on the viability of such a significant change to employment costs and tax policy.
No report states this step directly. Brind drew it from the reporting on each side of it, so treat it as an informed guess.
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group of high ranking officials, usually representing the executive branch of government
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The facts so far
As reported. Each one links to where it comes from.
- Lord Mark Price suggested an employer National Insurance 'break' or a substantially lower rate for hiring people aged between 21 and 24.lbc.co.uk
- Price noted that high National Insurance and the minimum wage have eroded any price differential between young and experienced workers.lbc.co.uk
- The proposal comes as the Government announced business-rates relief for small shops, pubs, and cafes.lbc.co.uk
Why it matters
The proposal addresses a core economic challenge: the high cost of employing young people, which Lord Price argues is currently hindering job opportunities. If the Cabinet were to implement such a break, it would directly alter the financial calculus for businesses, potentially encouraging them to hire younger, less experienced staff.
This discussion occurs against a backdrop of rising employment costs, which businesses have already responded to by reducing staff numbers or investing more heavily in technology, including artificial intelligence and digital pricing systems.
What we don't know yet
- Will the Cabinet prioritize this proposal over other economic pressures?
- What specific financial models would the Cabinet use to assess the impact of the proposed NI cut?
What would change this answer
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Reporting
- lbc.co.ukOct 18
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