The Conservative Party has put forward a pledge to cut employer national insurance on roles filled by younger workers by half, should the party form the next government. Under the proposal, employers would see the levy on workers aged 21 to 24 reduced from 15% to 7.5%, at a projected public cost of £2.3 billion.

Party leader Kemi Badenoch described the proposal as financially sound, with party figures pledging to release a dedicated document setting out the funding arrangements. Treasury modelling puts the upfront cost at £3.25 billion, though once additional tax revenues and reduced universal credit outlays are factored in, that figure is projected to narrow to £2.3 billion by 2029-30.

Those involved in the proposal projected the outcome as employment for tens of thousands of young people who currently receive out-of-work benefits — a shift that would convert that group from recipients of state support into net contributors to public finances.

Appearing across multiple broadcast outlets, Badenoch described what she characterised as a recruitment gap affecting graduates that she said required addressing, while also responding to questions about why most workers would see no change to their rate. She told interviewers that the approach was grounded in fiscal responsibility, and acknowledged that financial constraints alone prevented extending the reduction to all workers, adding that the intention to do so would exist if resources allowed.

In a television interview, Badenoch put forward the view that young people encounter a distinct and heavier burden of obstacles than the broader public does.

Figures released by the Office for National Statistics put the number of 16-to-24-year-olds across the UK outside any form of work, study, or vocational training at roughly 981,000 during the second quarter of this year.

The Conservative Party also outlined the previous week that a Conservative government would prevent school leavers under the age of 25 from moving directly onto welfare payments — a position the party framed as a disciplined approach to youth unemployment. Under that proposal, young people between 16 and 24 who had not held employment continuously for at least six months would lose access to universal credit.

Shadow Chancellor Andrew Griffith, setting out the national insurance pledge, contended that younger people would face a financial penalty under Labour's approach. Griffith noted that hiring costs for younger workers had risen under the government's payroll levy, labour-market regulations, and increases to the minimum wage floor.

The Conservatives described their proposals on tax reduction, regulatory reform, and opportunities for younger people as uniquely their own. Labour pushed back, characterising the plans as economically unrealistic and without identified funding. A Labour representative countered that Badenoch's party, during its time in office, had overseen a situation in which close to one million young people ended up outside both employment and education or training.

Questions about Griffith's call for an additional tax reduction without identified funding have drawn attention to his earlier role as a co-author of the fiscal package put forward under Liz Truss, which was followed by a period of notable economic instability. Whether the Conservative Party can be relied upon to manage public finances responsibly, or to improve opportunities for younger generations, remains a matter of ongoing political debate.

Andy Burnham's administration has put forward a series of measures that supporters say point towards a more optimistic direction for the region. The government announced a £2.5 billion commitment to help young people enter employment, with the Jobs Guarantee scheme set to be extended nationwide. Reform UK's Treasury spokesman Robert Jenrick outlined a separate proposal to remove the employer national insurance increase for all workers, funded through a levy on migrants.