Sainsbury’s boss: Cut hiring costs to tackle ‘Neets’ crisis

By the Editorial Team · Friday, October 23, 2026

Sainsbury’s CEO Simon Roberts urged the UK government to lower hiring costs for young workers and called on Chancellor John Healey to focus on reducing youth unemployment, especially among those not in education, employment, or training. The company plans to offer 10,000 work experience places and emphasized that aligning government policies with business efforts, such as reversing previous tax hikes, is essential to support job creation and control food inflation.

Simon Roberts, chief executive officer of Sainsbury’s, called on the UK government to address youth unemployment by reducing the costs associated with hiring young workers. Speaking ahead of the upcoming Budget, Roberts emphasized the need for Chancellor John Healey to prioritize supporting young people, particularly those classified as "Neets"—young individuals not in education, employment, or training.

Sainsbury’s, the country’s second-largest grocery chain, has committed to creating 10,000 work experience opportunities aimed at this group. Roberts stressed that government policies must align with business efforts by avoiding additional financial burdens on employers. “It’s crucial that we do not see a repeat of previous Budget measures that increased the tax burden on employing people, such as national insurance hikes or other cost increases contributing to food inflation,” he said.

The retail sector has experienced notable impacts from employer National Insurance contribution increases introduced during the tenure of Chancellor Rachel Reeves, Healey’s predecessor. Roberts and other industry leaders argue that these tax changes have placed significant strain on retail operations. Helen Dickinson, chief executive of the British Retail Consortium, echoed these concerns, suggesting that reversing some of Reeves’s tax increases could help reduce unemployment.

In recent weeks, top executives from major retailers including Sainsbury’s and Tesco met with Healey to discuss reforms to business rates and urged the government to intensify efforts to reduce the number of Neets. Roberts expressed optimism that the current administration under Mayor Andy Burnham is attentive to business needs, fostering hope for collaborative solutions.

Meanwhile, Sainsbury’s shares declined slightly following the announcement of slower sales growth. Roberts indicated that consumers could expect price increases ahead of the Christmas season to be less severe than initially feared. Industry projections had anticipated food inflation reaching as high as 10 percent this year, but current estimates suggest inflation will peak at approximately 6.4 percent by next summer.

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