National Insurance Contributions (Secondary Class 1 Contributions) Bill Committee: Amendment 13

Parliament voted on 17 December 2024 on Amendment 13 to the National Insurance Contributions (Secondary Class 1 Contributions) Bill, which proposed carving out specific sectors from the full employer National Insurance rate increase. The amendment, tabled by the Conservative opposition, would have maintained the existing 13.8% employer NICs rate for charities registered in England, Scotland or as voluntary organisations, GP practices, universities and further education colleges, rather than applying the new 15% rate the bill introduces. It was defeated by 353 votes to 206 (Division 70). The bill raises the rate of secondary Class 1 NICs paid by employers from 13.8% to 15% from April 2025, while also lowering the threshold at which employers become liable from £9,100 to £5,000 per year. The amendment would have shielded a defined group of employers in the charity, health and education sectors from the rate rise, leaving them liable at the old rate. Supporters argued these organisations provide essential community services and cannot easily absorb higher payroll costs without cutting those services. The government opposed any sector-specific carve-out, backing a universal increase to raise the revenue required for public spending. The division split almost entirely along party lines. All 349 Labour and Labour and Co-operative MPs who voted backed the government and rejected the amendment. Every Conservative (102), Liberal Democrat (70), SNP (8), Democratic Unionist Party (5), Reform UK (5), Plaid Cymru (3) and most independent MPs who voted supported the amendment. This created an unusually broad cross-party coalition in favour, though it fell well short of the Labour majority. The vote sits within a wider legislative debate over the fiscal and operational impact of the employer NICs increase, which the government has argued is necessary to repair public finances.