Alan Milburn rejects tax cut for youth jobs
The U.K.'s young employment adviser says a national insurance cut would "not be an effective use of public money."
Alan Milburn, the UK government's youth employment adviser, has rejected a proposal to cut employer national insurance contributions for young people in a bid to reduce youth unemployment. Speaking at the Labour Party conference in Liverpool, Milburn stated that the idea would cost £5.1 billion, which is beyond the government's capacity.
He argued that allocating such a significant sum would be an "ineffective use of public money" due to the "deadweight cost." Milburn, who has warned that the number of young people not in education, employment, or training could reach 1.25 million by 2030 without action, is currently developing recommendations to tackle the crisis.
He expects to present a more comprehensive plan within six months. Milburn also highlighted the greater barriers to opportunity faced by young people from working-class backgrounds, reflecting on his own journey from a council estate to a Cabinet position. He expressed concern that such barriers are becoming increasingly difficult to overcome, emphasizing the need to address the issue to ensure that success is not determined solely by luck but by opportunity.
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