Hospitality businesses have welcomed the news that employer National Insurance Contributions for under 21 year-olds will be scrapped in April 2015, making it cheaper for businesses to employ young people, though regretting the 16 month delay.
ALMR research shows that nearly a fifth of all employees in licensed hospitality are under 21 and that the sector created 1 in 6 of all new jobs for that age group in the past year alone. Responding to the announcement, ALMR Strategic Affairs Director, Kate Nicholls, said:
“The removal of the jobs tax for under 21s will be a boon to youth employment, investment in training and sustainable job creation in the licensed hospitality trade. This is a sector which offers jobs in all regions and at all skill levels – from entry level to graduate recruitment – and rapid career progression. It gives so many young people their first job and equips them with the transferable skills they need to succeed.”
With Chancellor George Osborne singling out high street businesses like pubs, saying that “these businesses epitomise the hardworking values that this government supports”, Nicholls went on to say:
“We are delighted at the Government’s recognition of the hard work that licensed retailers do in every town in the country and the value of the jobs we create, delivering prosperity and adding value to every town and region in the country. We hope to continue and accelerate our job creation efforts and the removal of this tax on jobs can only be a good thing for the industry, for our staff and for the country.”
British Hospitality Association CEO, Ufi Ibrahim also commented:
“The abolition of NI contributions for those starting out is welcome news and will surely stimulate job creation in both the hospitality sector and beyond.
“The commitment of the hospitality and tourism industry to creating jobs and supporting young people is evident in the British Hospitality Association’s Big Hospitality Conversation which has shown the potential of creating new jobs, apprenticeships and work placements for young people, and increasing hospitality employment to 3 million by 2020.”