National Insurance Contributions (Secondary Class 1 Contributions) Bill: Motion to Disagree with Lords Amendment 8
316Ayes
189Noes
Carried · majority 127 · Government won144 did not vote
649 Members · Aye 316 · No 189 · DNV 144 · grey dots in centre are abstentions
Analysis
Commons
Commons
On 19 March 2025, MPs voted by 316 to 189 to reject Lords Amendment 8, which would have protected businesses with fewer than 25 employees from the reduction in the secondary threshold at which employers become liable for National Insurance Contributions. The government's motion to disagree with the Lords passed, preserving its original policy intact. The vote means the secondary threshold reduction, from £9,100 to £5,000 per year per employee, will apply to all employers regardless of size when the changes take effect on 6 April 2025. The government argued that smaller employers are already protected through a separate measure in the Bill: doubling the Employment Allowance from £5,000 to £10,500 and removing the £100,000 NICs liability cap that previously excluded larger small businesses from claiming it. Ministers said 865,000 employers would pay no employer NICs at all as a result of that change. Opponents argued the Employment Allowance is insufficient to offset the threshold cut for the smallest businesses. The vote divided almost entirely along party lines. All 311 Labour and Labour and Co-operative MPs who voted backed the government. Every Conservative, Liberal Democrat, SNP, Reform UK, Plaid Cymru, DUP and Green MP who voted opposed it. There were no Labour rebels. Three independents voted with the government and four against. The division is part of a broader ping-pong sequence, in which the Lords passed 21 amendments to the Bill and the Commons rejected the great majority of them.
Voting Aye meant
Support rejecting the Lords amendment, keeping the threshold reduction applying to all employers regardless of size, maintaining the full revenue-raising package.
Voting No meant
Support the Lords amendment, arguing that the smallest businesses should be shielded from the threshold cut, even if this reduces the revenue raised.
Each row is one party. The stacked bar gives the within-party split of Aye / No / Absent; the columns on the right give the raw counts. The whip column shows the published party position — “Free vote” means the whip was formally removed for this division.
Party
Whip
Aye / No / Abs
Aye
No
Abs
Labour Party
Whipped Aye
280
0
81
Conservative and Unionist Party
Whipped No
0
95
21
Liberal Democrats
Whipped No
0
62
9
Labour and Co-operative Party
Whipped Aye
31
0
11
Independent
—
3
4
6
Scottish National Party
Whipped No
0
8
1
Reform UK
Whipped No
0
6
1
Sinn Féin
—
0
0
7
Democratic Unionist Party
Whipped No
0
3
2
Green Party of England and Wales
Whipped No
0
3
1
Plaid Cymru
Whipped No
0
4
0
Social Democratic and Labour Party
—
0
1
1
Your Party
—
0
1
1
Alliance Party of Northern Ireland
—
0
0
1
Restore Britain
—
0
1
0
Speaker
—
0
0
1
Traditional Unionist Voice
—
0
1
0
Ulster Unionist Party
—
0
1
0
Source · Hansard · UK Parliament Votes API · whip status from announced positions; “free vote” indicates the whip was formally removed
Government must reject all amendments as they risk funding needed to fix inherited fiscal crisis and repair public services; exemptions would require higher borrowing, lower spending, or other tax rises.Labour · Voted aye · Read full speech (4,959 words) →
Amendments should be supported to protect healthcare providers, charities, and small businesses; the national insurance rise is a broken manifesto promise that will stifle growth and harm vulnerable sectors.Conservative · Voted no · Read full speech (2,721 words) →
All 21 amendments should pass as the jobs tax is self-defeating, robbing Peter to pay Paul by taxing GPs and care providers who prevent hospital admissions; alternative fairer revenue sources exist.Liberal Democrat · Voted no · Read full speech (1,111 words) →
Individual exemptions would compromise tax neutrality, simplicity, and stability; a good tax system treats similar activities similarly and does not introduce cliff-edge perverse incentives.Labour · Voted aye · Read full speech (1,233 words) →
The tax will devastate children's hospices, care homes, nurseries, and early years providers; costs will cascade to vulnerable families and women disproportionately, and the government shows no compassion.Conservative · Voted no · Read full speech (1,432 words) →
Labour broke its manifesto promise on national insurance; the amendments protect essential services and vulnerable people, and the threadbare government benches show Labour does not care.Conservative · Voted no · Read full speech (1,145 words) →
The national insurance increase is an unforced fiscal error; 82% of firms face potential lay-offs, and growth is collapsing; the government should conduct a proper impact assessment as Lords amendment 21 requires.SNP · Voted no · Read full speech (1,024 words) →
Sources
Division dataUK Parliament Votes API
DebateHansard · Commons
Stance analysisAI analysis · Claude 4.x
LicenceOpen Parliament Licence v3.0