Milburn rejects scrapping employer contributions for young people — Politico Europe

In the United Kingdom, Alan Milburn, the government’s adviser on youth employment, opposed a proposal to abolish employers’ contributions to the National Insurance system for workers under the age of 25. As Politico Europe reports, he considers such a move an inefficient use of public funds.

Cost of the proposal

The idea of abolishing employer contributions for workers under 25 was put forward by members of the parliamentary Work and Pensions Committee. They proposed it as a way to counter mass youth unemployment.

According to Milburn, implementing the proposal would cost £5.1 billion. He said Chancellor John Healey does not have such funds and called the initiative an inefficient use of public money because of unproductive spending.

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Recommendations for the government

In May, Milburn published a report warning that without urgent action, the number of young people who are neither working nor studying could reach 1.25 million in the early 2030s. He is now preparing recommendations for ministers on tackling this problem.

According to Milburn, in about six months these recommendations will resemble a programme of change more closely. The former health minister also noted that young people from working-class families today face greater barriers to opportunity. He chaired the Social Mobility Commission from 2012 to 2017.