National Insurance Contributions (Secondary Class 1 Contributions) Bill: Reasoned Amendment to Second Reading

Parliament voted on 3 December 2024 on a reasoned amendment (a procedural motion that, if passed, would have blocked a bill from proceeding by stating reasons for rejection) to the National Insurance Contributions (Secondary Class 1 Contributions) Bill at its Second Reading. The amendment was tabled by the Conservative opposition and argued that the bill should not proceed because it would harm businesses, damage employment, and break manifesto commitments made before the 2024 general election. The amendment was defeated by 330 votes to 186, allowing the bill to continue its passage through Parliament.

The bill in question raises employers' National Insurance contributions, a measure the government has positioned as essential to funding public services. A vote in favour of the amendment would have halted the bill entirely at this early stage. By defeating it, the government cleared the way for the legislation to advance. The rise in secondary Class 1 contributions directly affects employers across the UK, increasing the cost of hiring staff, and has drawn concern from businesses, charities, and public sector bodies that employ large workforces.

The vote divided almost entirely along party lines. All Labour and Labour and Co-operative MPs who voted did so against the amendment, while every Conservative, Liberal Democrat, SNP, Reform UK, Plaid Cymru, and DUP member who voted supported it. This represented a rare moment of cross-opposition unity, though the combined opposition total of 186 fell well short of the government's 330. There were no notable rebels on the government benches. The bill subsequently continued through Parliament, with the Finance Bill's Third Reading in March 2025 passing by 339 votes to 172, confirming the government's ability to sustain its fiscal programme through the parliamentary process.