Overview
- Testifying to the Treasury Committee, the Chancellor said critics have a valid case that the employers' national insurance increase should not have happened.
- She maintained the rise, introduced in her 2024 Budget, was needed to fund public services and deliver a £29 billion annual uplift for the NHS, which she said helps reduce waiting lists.
- Official ONS data show 957,000 16-to-24-year-olds were NEET in October to December 2025, with the UK unemployment rate at 5.2% in the three months to November.
- Reeves said actions starting next month include more apprenticeship places and a youth guarantee offering paid work to eligible young people out of education or employment for 18 months.
- Business groups reported hiring pressures from higher employment costs, with the British Chambers of Commerce telling MPs that 13% of surveyed members made redundancies after the NI changes and sector leaders warning of disproportionate impacts on part-time, entry-level roles.