Government urged to reverse National Insurance hike and tackle youth unemployment

The London Assembly has today called on the Government to reverse the National Insurance increase and urgently produce a plan to tackle rising youth unemployment.

The Assembly noted that unemployment has risen to 5.2 per cent, the highest level in five years, and linked this to the decision to raise National Insurance, which increased employment costs at a time of weak growth. 

It also highlighted that youth unemployment has climbed to 16.1 per cent, with young people and students disproportionately affected as employers cut back on part-time and entry-level roles, particularly across London. 

Neil Garratt AM, who proposed the motion, said:

“Unemployment is rising and youth unemployment especially at a time when Londoners are already struggling - and this has been caused by the economic policies pursued by the Government at successive budgets. 

“I hope that the Government recognises the impact that their national insurance hike is having, and reverses it at the first opportunity - and that the Mayor of London listens to the Assembly’s decision today and lobbies for London.”

The full text of the motion is:

“This Assembly deeply regrets the current state of the UK economy following the consequences of two deeply damaging budgets delivered by the Chancellor (The Rt Hon Rachel Reeves MP).

This Assembly notes that unemployment in the UK has risen to 5.2 per cent, its highest level in five years. This increase is clearly linked to the Government’s decision to impose a Jobs Tax, increasing the cost of employment for businesses at a time of weak growth.

This Assembly further notes that youth unemployment has risen sharply to 16.1 per cent, with young people and students disproportionately affected as employers cut back on part-time and

entry-level roles, and that the National Insurance hike has particularly undermined flexible, part-time and student employment across London’s economy.

This Assembly recognises that the combined effect of rising unemployment, persistently high inflation, and economic stagnation has left businesses, families, and communities across London worse off, despite repeated promises from the Government that Londoners would feel better off.

This Assembly therefore calls on the Government to:

• Reverse the National Insurance hike;


• Urgently produce a plan to tackle rapidly growing youth unemployment and get more young people into work.

This Assembly also calls on the Mayor to lobby Government to this effect.”

The meeting can be viewed via webcast or YouTube.

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