Abolishing the national insurance “jobs tax” for 1.5 million workers under 21 will “help businesses grow and create jobs and help for the high street”, George Osborne said

Announcing this year’s Autumn Statement, Osborne said from 6 April 2015 employers will no longer be required to pay Class 1 secondary National Insurance Contributions (NICs) on earnings paid up to the Upper Earnings Limit (UEL) to any employee under the age of 21.

He said: “We’re not going to leave young people behind as the economy grows. We are going to have a responsible recovery for all.”

However, he also warned that young people would have to work longer as he confirmed that the state pension age would rise to 68 in the mid-2030s and 69 in the late 2040s.

The Chancellor also introduced a £1,000 business rates discount to help the UK’s ailing high street.

There will also be a doubling of the Small Business Rate Relief for a further 12 months from 1 April 2014 to help 540,000 firms across the UK. 

John Cridland, director-general of the Confederation of British Industry, said: “The pressure on the high street has been recognised; the 2% cap on business rates and discount for very small businesses are positive, as is the reoccupation relief.

“Abolishing a jobs tax on employing young people under 21 will make a real difference and help tackle the scourge of youth unemployment.

“But it was a missed opportunity not to support our hard-pressed energy intensive businesses which are also struggling with rising costs, and the package on housing supply could have been more ambitious.”