Employers should be exempted from National Insurance contributions for all workers aged under 25 earning no more than £50,270 a year, MPs have said.
The Work and Pensions Committee urged the Treasury to extend the existing employer NI exemption for under-21s and apprentices under 25 to include all workers in that age group.
It warned that young people were being disproportionately affected by weaker recruitment as employers contend with higher wage bills and other employment costs.
More than one million people aged 16 to 24 were not in education, employment or training (NEET) between January and March 2026, equivalent to 13.5% of the age group. That total has risen from 673,000 in 2021.
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