Tories make a pitch to younger voters
Kemi Badenoch is set to introduce a policy that would provide first-time homebuyers with a £5,000 national insurance rebate, as part of the Conservative Party’s strategy to support young people entering the housing market.
The proposal, to be detailed by shadow chancellor Mel Stride, would see the first £5,000 of national insurance contributions from those in their first full-time job placed into a long-term savings account. Couples could receive up to £10,000.
The Conservatives estimate that the measure would benefit around 600,000 people annually, with the cost to be met through reductions in government spending, including changes to sickness benefits for less severe mental health conditions and limiting welfare access for some foreign nationals.
This marks the party’s most significant policy aimed at younger voters, as Badenoch seeks to strengthen Conservative appeal among this demographic. Recent elections have seen a shift in support away from the party among working-age voters, with the average age of a Conservative voter rising considerably since 2019.
Tories pledge £5,000 national insurance rebate for young homebuyers https://t.co/9NYByFFcBK
— Times Politics (@timespolitics) October 5, 2025
“When we deliver the urgent change that is needed to stop young people going straight from school to a life on benefits, we will use those reforms to fund tax cuts which are laser-focused on aspiring young people,” Stride said. “Helping people to buy a home, build a family, save for the future – that is the Conservative dream.”
Under the plan, the first £5,000 of national insurance contributions would be automatically allocated to a savings account, which could later be used for a property purchase or withdrawn after a minimum five-year period. Individuals would be able to select their preferred savings product.
The announcement comes amid concerns over the number of young people moving directly from education into long-term sickness, contributing to increased expenditure on disability and incapacity benefits. There are currently close to one million young people not engaged in education, employment, or training. The party has also indicated plans to end disability benefits for conditions such as anxiety and depression.
James Cleverly, shadow housing secretary, emphasised the need for the party to reclaim its reputation for supporting aspiration among younger voters. “Young people feel the idea of having a home of their own is as credible as walking on the moon, and we have got to get a grip of that,” he said.
Cleverly attributed current challenges in the housing market to excessive regulation, stating: “We’ve killed the market in housing, because when you have such surplus demand, what markets do is respond with provision, and we somehow collectively, very well-intentioned through regulation and various other bits and bobs, have made the market incapable of responding to that surplus demand.”
Meanwhile, Nicholas Mendes, mortgage technical manager at London broker John Charcol, said that while a £5,000 rebate would be welcome, it would not be transformative. “In most regions it would comfortably cover conveyancing, valuation and moving costs, with a little left for the deposit,” he said. “In London and much of the South East, where deposits are many multiples of that figure, it is unlikely to change behaviour in a meaningful way.”
Mendes added that the policy’s design would be critical. “If NI contributions are diverted into a dedicated account and released only on purchase, it could encourage saving discipline, but the benefit would feel distant for those early in their careers,” he pointed out.
“Lenders will also need clarity on whether the rebate counts towards the cash deposit, whether it can be combined with a Lifetime ISA, and how it is treated if someone changes jobs or has breaks in employment. Timing is equally important: a credit available from the start of full-time work is more helpful than a benefit that drip-feeds over several years.
“A flat £5,000 is simple but blunt given the sharp regional differences in affordability. A cap or taper linked to local prices or income multiples would do more in high-cost areas without over-subsidising lower-cost ones. There is also a fairness angle. If past NI contributions do not count, savers who have already been working for some time could feel penalised.”
According to Mendes, the scheme also needs to work cleanly alongside other support for greater impact. “If it can be combined with LISA bonuses and straightforward lender incentives such as cashback or fee-free products, the help with upfront costs is more meaningful,” he said. “If it replaces existing reliefs or adds complexity, the benefit will quickly shrink.”
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