Young bearing the brunt of UK tax and wage changes, says BoE economist

Bank of England chief economist Huw Pill warned that recent increases in employer taxes (NICs) and the national living wage in the UK are disproportionately impacting young people's employment prospects. Speaking before a Treasury select committee, Pill highlighted that youth unemployment has risen to 16.1%, exceeding the EU average and reaching its highest level since 2014. This increase coincides with Chancellor Rachel Reeves' increase in employer NICs and efforts to equalize the national minimum wage, as promised in Labour's manifesto. While the government aims to eliminate age-based wage disparities, concerns are growing about the potential for further increases in youth unemployment, prompting consideration of a slower rise in the minimum wage for younger workers.

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