The drive to help young people get jobs in Eastleigh will be boosted by plans to abolish employers’ National Insurance Contributions (NICs) for under 21-years-olds, Mike Thornton MP reports.
The news means businesses will no longer have to pay tax on their employees aged under 21-years-old. For example, companies will save £1,000 each year for every young employee earning £16,000.
In Eastleigh the plan to abolish NICs for young people from April 2015 means companies will not have to pay the contributions for 2,910 young people.
Local MP Mike Thornton welcomed the decision, which was as part of the chancellor’s Autumn Statement, and said:
"The Liberal Democrats are focused on getting young people into work and this is exactly the kind of initiative needed to give businesses a break and encourage them to start recruiting.
"Since 2010 we have already helped create more than 1.5m new apprenticeships, with over 2,000 new apprenticeships created in Eastleigh alone. Meanwhile, Nick Clegg’s £1bn Youth Contract is supporting work experience, wage incentives and apprenticeships.
"Our economy is growing because of the hard work of people and businesses, they deserve this help. The coalition's economic plan is the rock on which our recovery is being built – and it is happening because of the Liberal Democrats."