The Conservative Party has proposed halving employer National Insurance contributions for workers aged 21 to 24 if it wins the next UK general election, making youth employment a major focus of its latest economic plans.

Under the proposal, the employer National Insurance rate for eligible young workers would fall from 15% to 7.5%. The Conservatives estimate the policy would have a dynamic cost of around £2.3 billion in 2029–30, after accounting for additional tax receipts and reduced benefit spending.

Conservative leader Kemi Badenoch is presenting the proposal at the party's conference, arguing that younger workers face particular difficulties entering the labour market and that lower employment costs could encourage businesses to recruit them.

The party says the measure is designed to support tens of thousands of young people into work, while its wider plans include changes to welfare eligibility for unemployed people under 25.

The proposal has already attracted criticism from Labour, which described it as unfunded, while Reform UK has argued for a broader reduction in National Insurance rather than targeting only younger workers.

The announcement comes as the Conservatives seek to position tax reductions, youth employment and economic growth at the centre of their political offer ahead of the next general election.