National Insurance Contributions (Secondary Class 1 Contributions) Bill Committee: Amendment 23

What happened: On 17 December 2024, the House of Commons sitting in Committee of the whole House voted on Amendment 23 to the National Insurance Contributions (Secondary Class 1 Contributions) Bill. The amendment would have modified the employer National Insurance contribution increases set out in the Bill, aiming to reduce the burden on certain employers. The amendment was defeated by 352 votes to 196.

Why it matters: The Bill raises the rate of secondary Class 1 National Insurance contributions, paid by employers, from 13.8% to 15%, while also lowering the threshold at which employers begin paying those contributions. Amendment 23 sought to carve out or reduce that burden for specific categories of employer. The debate focused heavily on the effect of the increases on GP surgeries, care homes, hospices, charities, nurseries and small businesses, all of which are either privately run or voluntary-sector organisations that cannot easily absorb higher payroll costs. Critics argued that sectors already under financial strain would face cuts to staffing and services as a direct consequence of higher employer National Insurance bills, with knock-on effects for NHS capacity and social care provision.

The politics: The vote divided almost entirely along party lines. All 346 Labour and Labour and Co-operative MPs who voted backed the government by voting no, while Conservatives, Liberal Democrats, Reform UK, the Democratic Unionist Party and Plaid Cymru all voted aye. Seven independents voted aye and three voted no. The Scottish National Party sent only one member to vote, who voted aye. There were no notable rebels on either side. The debate took place against the backdrop of Opposition accusations that the government had broken pre-election promises not to raise National Insurance, while the government defended the measure as necessary to repair what it described as a damaged fiscal inheritance from the Conservatives.