David Cameron proposes tax cuts to employers hiring unemployed

The Conservative leader, David Cameron, has proposed giving tax cuts to employers who hire new workers. Firms could receive National Insurance breaks of up to £2,500 per person per year for hiring staff who have been unemployed for three months or more.

David Cameron announced that £2.6 billion of tax breaks would be given to employers in total – which he argued would be paid for by the money saved on welfare payments, making the scheme revenue neutral. The Conservatives suggest that the scheme will create new jobs, boost the economy and reduce the social costs associated with unemployment.