Conservatives to announce £5,000 tax rebate for young homebuyers

October 5, 2025

Conservatives to announce £5,000 tax rebate for young homebuyers

The Conservatives will set out plans to "reward work" by giving young people a £5,000 tax rebate towards their first home when they get their first full time job.

In his speech to the party's conference in Manchester, the shadow chancellor, Mel Stride, is expected to announce proposals for a "first-job bonus" that would divert national insurance payments into a long-term savings account.

The party says the plans will be funded by cuts to public spending worth £47bn over five years in areas such as welfare, the civil service and the foreign aid budget.

Sir Mel is expected to say that there is "no more pretending we can keep spending money we simply do not have".

Proposals include stopping welfare claims for people with "low level mental health problems" and reducing the number of civil servants by around 132,000, a reduction of around a quarter.

Sir Mel will also say his party would reduce aid spending by £7 billion to 0.1% of national income.

The conference in Manchester marks almost one year since Kemi Badenoch was elected party leader.

In the last 12 months, the party has struggled to counter the political threat posed by Reform UK and suffered heavy defeats in this year's local elections .