The Taxpayer's Alliance today called on the government to scrap the burden of National Insurance payments for all young workers.
The campaign group argued the government should scrap student loan hand-outs and instead help all young people, following reports that chancellor Philip Hammond was looking at ways to tackle "intergenerational unfairness" at next month's Budget.
John O'Connell, chief executive of the Taxpayers’ Alliance, said:
The chancellor should give all young people a break by raising the starting age of employee National Insurance. This would show that this government is serious about tackling intergenerational unfairness for all young Brits, not just those who went to university.
We keep hearing about the merits of a free market, low tax economy so it's time to see some action to back up those words, and next month's Budget is the perfect time to announce a raft of measures to ease the pressure on taxpayers.
The Taxpayer's Alliance proposed three options for cutting National Insurance contributions, including:
- Raising the starting age on employee National Insurance from 16 to 26 instead of the government's plan to raise the student loan repayment threshold from £21,000 to £25,000 - which would cut tax by £2.6bn instead of raising spending by £2.3bn
- Raising the starting age from 16 to 30, cut the student loan repayment threshold from £21,000 to £12,500 and raise the repayment rate from nine to 15 per cent - which would cut spending by £4.4bn and cut tax by £7.2bn instead of raising spending by £2.3bn
- Raising the starting age from 16 to 32 instead of Labour's plan to abolish tuition fees - which would cut tax by £10.2bn instead of raising spending by around £9.5bn