National Insurance Contributions Bill – Third Reading

On 17 December 2024 the House debated and voted on amendments relating to the National Insurance Contributions Bill.

The Bill, introduced on 6 November 2024, seeks to ask employers to contribute more. This means, from April 2025, the rate of Employer NICs will increase to 15%, and the per-employee threshold at which employers become liable to pay NICs on employees’ earnings will be reduced to £5,000. The government will protect many of the smallest businesses by increasing the Employment Allowance to £10,500. More than half of employers will see no change overall from these measures in the next tax year. Eligibility for the Employment Allowance will also be expanded to allow more businesses to claim, with the removal of the threshold of £100,000 of employer NICs bills in the previous tax year.

Amendment 13: The amendment provides adult social care, hospice, primary care, nurseries and charities would continue to pay contributions at current rates.  The votes were Ayes: 206, Noes: 353

Amendment 23: This amendment would exempt veterans’ salaries from NICs changes.  The votes were:  Ayes: 196, Noes: 352

New Clause 1: This clause would require the Chancellor of the Exchequer to, within a year of this Act being passed, publish an assessment of the impact of the changes introduced by this Act on rates of employment, real wages, inflation, and real household disposable income.   The votes were : Ayes: 195, Noes: 353
The Bill’s second reading is debated in the House of Lords.