Archive · 8 Oct 2026
Badenoch Pledges Inheritance Tax Cuts and Youth Hiring Incentives
Kemi Badenoch announced tax changes she would make if her party wins the next general election.
She wants families to be able to pass on their homes without inheritance tax.
Couples would also be able to pass on an extra £1 million without paying that tax.
At present, inheritance tax is usually charged on estates worth more than a set amount.
The article says only about 5% of estates pay it, but rising house prices mean more families may reach the threshold.
Badenoch also wants employers to pay less National Insurance for workers aged 21 to 24.
She says this could encourage businesses to hire young people.
None of these plans would happen unless the Conservatives win the election.
Kemi Badenoch said a Conservative government would abolish inheritance tax on family homes.
Couples would be allowed to pass on an additional £1 million tax-free.
Inheritance tax is currently 40% above £325,000, or £500,000 when a home goes to a direct descendant.
The article says around 5% of estates pay the tax, while rising house prices are bringing more families above the threshold.
Badenoch also proposed cutting employer National Insurance contributions for 21-to-24-year-olds from 15% to 7.5%.
- Who
- Kemi Badenoch and the Conservative Party.
- What
- Badenoch proposed scrapping inheritance tax on family homes, raising the tax-free amount couples can pass on, and cutting employer National Insurance for 21-to-24-year-olds.
- When
- She announced the proposals on the final day of the Conservative Party conference, described as Wednesday (7); the article does not specify the month or year.
- Where
- The Conservative Party conference in Birmingham.
- Why
- Badenoch said people who work hard and save should be rewarded, and said the National Insurance cut would encourage businesses to hire young people.
Support for the proposals
Concerns and counterarguments
Inheritance tax on family homes
Support for the proposals
Badenoch argued that people who work hard and save should be rewarded, and proposed removing inheritance tax on family homes.
Concerns and counterarguments
The article notes that inheritance tax is projected to raise about £14.7 billion annually by 2030/31; Badenoch said she wanted to abolish the tax altogether only when the government could afford it.
Employer National Insurance reduction
Support for the proposals
Badenoch said halving the employer rate for 21-to-24-year-olds would encourage businesses to hire young people.
Concerns and counterarguments
The article provides no specific opposing response to this proposal; it reports Badenoch's broader criticism that Labour's spending plans would use money the country did not have.
- Current inheritance tax rate
- 40% on estate value above the applicable threshold.
- Standard inheritance tax threshold
- £325,000.
- Threshold when a home passes to a direct descendant
- £500,000.
- Proposed additional tax-free inheritance for couples
- £1 million.
- Estates currently paying inheritance tax
- Around 5%, according to the article.
- Projected inheritance tax revenue
- About £14.7 billion a year by 2030/31, according to House of Commons research cited in the article.
- Proposed employer National Insurance rate for ages 21–24
- A reduction from 15% to 7.5%.
- Implementation condition
- The proposals would take effect only if the Conservatives win the next general election.