Chancellor Rachel Reeves defends 2024 NI hike, citing NHS funding, despite criticism it worsened youth unemployment.

Chancellor Rachel Reeves acknowledged criticism that the 2024 employers’ national insurance hike may have worsened youth unemployment, which hit 957,000 for those aged 16 to 24 in late 2023. She defended the move as essential to fund a £29 billion annual NHS boost, citing benefits for waiting lists and workforce productivity. The government is expanding apprenticeships and launching a youth guarantee offering paid work after 18 months out of education or employment. However, business groups report the tax rise has hurt hiring, with some firms cutting staff and pausing training, especially for young people in part-time roles, where effective tax rates rose sharply.