Ministers say no to employer NI relief for all under-25s, ten days before the Budget

The government has turned down a recommendation from the Commons Work and Pensions Committee to extend employer national insurance relief to all employees under 25, Ayes To The Right reports. The response to the committee's youth employment report was published on 15 October.

What was on the table The committee wanted the existing Upper Secondary Threshold, which currently covers employees under 21 and qualifying apprentices under 25, extended to everyone under 25. Employers would then pay no Class 1 employer NI on those workers' earnings up to £50,270 a year. In its July report the committee cited Resolution Foundation modelling that removing employer NI for under-25s could add around 38,000 young people to employment, at a cost of £5.1bn.

Why ministers declined The response points to the tax and spending decisions needed to protect the public finances and fund public services. It rules out this specific extension only. It is not a commitment that nothing will change on employer NI at the Budget on 28 October.

What it means for operators: UKHospitality calls the sector the number one employer of young people, so this was one of the trade's most direct asks. Budget your 2027 people costs on current thresholds, keep the under-21 and apprentice reliefs in your hiring mix, and treat any Budget movement as upside rather than plan.