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Hospitality Industry: Employers' Contributions

Asked by Sarah HallLabour (Co-op)TreasuryTabled Answered 24 November 2025UIN 92281

The question

To ask the Chancellor of the Exchequer, whether she will consider extending Employer NICs exemptions to young people and those returning to work from welfare to support employment growth in sectors such as hospitality.

Answered by Dan Tomlinson

Businesses can claim a number of employer NICs reliefs including those for under-21s and under-25 apprentices. This means employers will pay no employer NICs for apprentices under 25 or employees under 21 on earnings up to £50,270.

There are a wide range of factors to take into consideration when introducing or expanding a tax relief. These include how effective the relief would be at achieving the policy intent, how targeted support would be, whether it adds complexity to the tax system, and the cost.

The Government keeps all taxes under review as part of the policy making process. The Chancellor will announce any changes to the tax system at fiscal events in the usual way.

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