CBI: slash national insurance for companies hiring young jobless

CUTTING national insurance contributions for companies employing young workers and strengthening links between schools and businesses will cut youth unemployment, the Confederation of British industry (CBI) claimed today.

Giving companies a “young Britain credit” worth £1500 to take on unemployed staff aged between 16 and 24 will cover the first year of national insurance for employers, increasing the incentive to hire.

The CBI estimates that this will cost £150m per year which is “affordable within the context of the government’s deficit reduction plans”.

Other proposals include creating 450 business ambassadors who would build partnerships between schools and firms. This would “enthuse young people about the world of work from an early age,” said CBI boss John Cridland, and “make sure young people can shine in the jobs market.”

Welfare reform including suspending rather than cancelling benefits when a claimant takes a job, reducing disincentives to work, will also encourage employment, the CBI said.