§ Mr. Kenneth Clarkeasked the Secretary of State for Social Services if he will initiate studies of the possibility of having a lower rate of national insurance contributions for employees below the age of 18 years, and whether he will include in his studies evaluations of similar schemes in France and Belgium.
§ Mr. OrmeReduced rates of contributions and benefits for people under 18 were abolished in April 1975 when contributions for employees became fully earnings-related. The reintroduction of special rates of contribution for people under 18 would entail very considerable operational difficulties, and we see no justification for complicating the national insurance scheme in this way. Under the present arrangements the contributions of employee and employer are already low where, as will often be the case, the earnings of a young person are low; and the contribution rates themselves are low compared with those of France and Belgium where it is understood that, as an aid to recruitment, some temporary reduction has been made in employers' contributions.
My right hon. Friend the Secretary of State for Employment has since 1975 introduced a number of measures designed to increase employment and training opportunities for young people. These include the payment of a youth employment subsidy to employers in the private sector and the nationalised industries, which, as my right hon. Friend announced in his statement to the House on 29th June has been extended to 31st March 1978.—[Vol. 934, c. 435.]