National Insurance bill: Lords asks government to think again

The National Insurance Contributions (Secondary Class 1 Contributions) Bill will implement the new rates of national insurance contributions announced by the Chancellor of the Exchequer in the 2024 Autumn Budget.

Further checks

Report stage is a further chance to closely scrutinise elements of the bill and make changes.

Proposed changes

Members speaking at report stage put forward amendments (PDF) to the bill on subjects including:

• social security and benefits in Northern Ireland
• government review of the impact on economic growth
• increased costs for local authorities.

Votes

There were eight divisions (votes) on proposed changes to the bill.

Members voted to agree four changes which would maintain current contribution rates or provide exemptions from higher rates for:

• health and care providers, including GPs, dentists and pharmacists
• charities with annual revenue less than £1 million
• transport providers for children with special educational needs and disabilities
• low earning or low employee businesses and organisations.

Members also agreed to changes on:

• increasing employment allowance in the early years sector to £20,000
• requiring the government to review the impact of the new law on certain sectors.

Two further changes on new contribution rates for part-time workers and maintaining current rates for sectors including universities, councils and housing associations, were put to a vote but disagreed to by members.

Catch up

• Watch the Parliament TV recording - part one and part two.
• Read the Lords Hansard transcript - part one and part two.

Explore further information

Find out more about the bill in the House of Lords Library briefing.

Next steps

Third reading, a final chance to 'tidy up' the bill and make sure the new law is effective, workable and without loopholes, is scheduled for Tuesday 4 March.

What's happened so far?

Committee stage

Committee stage, a thorough examination of the individual parts (clauses) of the bill, concluded on Thursday 6 February.

Second reading

Second reading, the main debate on the key principles and main purpose of the draft law, took place on Monday 6 January.

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