Chancellor Moves to Increase Employment of Those Under 21 Years of Age
CHANCELLOR MOVES TO INCREASE EMPLOYMENT OF THOSE UNDER 21 YEARS OF AGE – Yesterday the Chancellor George Osborne took a number of measures to ensure those under 21 years of age and who are unemployed will no longer have an excuse not to work.
Mr. Osborne firstly announced that he would scrap employers National Insurance contributions for employers who provide employment for anyone under the age of 21; such a move will certainly give employers much needed relief and provide an incentive to employ more young people and ultimately provide essential training.
Currently Britain has youth unemployment of over one million individuals and this measure, he hopes, will provide relief for employers, work for the unemployed and a weight lifted from the shoulders of the austerity strapped taxpayer in terms of having to support unemployment welfare costs.
“We are going to abolish the jobs tax on young people under the age of 21. Employer National Insurance contributions will be removed altogether on a million-and-a-half jobs for young people.
We’re not going to leave young people behind as the economy grows. We are going to have a responsible recovery for all. The cost for a business of employing a young person on a salary of £12,000 will fall by over £500. For someone on £16,000, that’s over £1,000 off.” Chancellor George Osborne
Mr. Osborne’s announcement during his Autumn Speech whilst commendable and certainly a positive move in the right direction, cannot be implemented immediately due to tax legislation having to be amended; it is expected due to this issue that the new system will not come into effect until April 2015.
Mr. Osborne’s goal is to reduce net unemployment from 7.6% to 5.6% within the next few years and these measures will be beneficial to society as a whole.
Potentially the scrapping of National Insurance for under 21’s could potentially save employers £4,658 per employee annually giving them an incentive to employ more under 21’s and provide much needed training.
Campaigners for jobs are certainly delighted by the move which clearly states that the Government is in fact serious about tackling youth unemployment and providing much need opportunity for our youth.
In another move by Mr. Osborne he also announced that youngsters shouldn’t be able to leave school and go straight on the dole and therefore school leavers who leave education poorly qualified will be banned from receiving unemployment benefit.
Mr. Osborne went on to say that young jobseekers lacking basic skills will have their benefits reduced significantly unless they agreed to a minimum of 16 hours training per week in order to increase their chances of employment.
It was clear that the Chancellor wanted to do more and basically strip benefits from all under 25’s who refused to find employment; unfortunately for the taxpayer this move was vetoed by the Deputy Prime Minister Nick Clegg – yes Mr. Clegg once again shows that the lazy and inept scroungers are more of a priority on his list than those who work hard and pay taxes.
It appears that the Government are taking the slowly, slowly and softly, softly approach by announcing that the scheme will only apply to 18 to 21 year olds and a pilot scheme will first be introduced in small key areas throughout the country to determine the overall effect it has on unemployment rates.
“A culture of worklessness becomes entrenched when young people can leave school and go straight onto the dole, with nothing expected in return. That option is coming to an end in our welfare system.” Chancellor George Osborne
The measures are tough but it’s what is needed. We must open our eyes and acknowledge that we have an aging population who need caring for and the cost of pensions continues to rise as people live longer.
We need a youthful workforce in order generate taxes that will be able to care for pensioners and those who rightfully cannot work.
Welfare is now widely acknowledged as being the single most damaging aspect to any economy and a recovery of the economy is not possible unless we are willing to work and refuse to provide money to those to simply do not want to work.