National Insurance Contributions (Secondary Class 1 Contributions) Bill Motion to Disagree with Lords Amendment 21

Wednesday, 19 March 2025 · Division No. 137 · Commons

316Ayes

–

187Noes

Passed

143 MPs did not vote

leftGovernment wonPro Employer Ni Increase(Yes)Anti Employer Ni Increase(No)Pro Lords Scrutiny(No)Fiscal Revenue Raising(Yes)

Voting Yes means

Support the government in overturning the Lords' amendment, keeping the original Bill's approach to increasing employer National Insurance contributions

Voting No means

Support retaining the Lords' amendment, which modified the government's employer National Insurance increase in some way

Parliament voted on 19 March 2025 to reject Lords amendment 21 to the National Insurance Contributions (Secondary Class 1 Contributions) Bill, overturning a change made by the House of Lords to the government's employer National Insurance legislation. The motion to disagree with the Lords amendment passed by 316 votes to 187. The vote was one of several on the same day concerning Lords amendments 1 to 21, most of which the government also moved to reject.

The vote matters because it keeps in place the government's planned increase to employer secondary Class 1 National Insurance contributions, meaning the higher rate and lower threshold for employers will proceed as originally set out. Lords amendment 21 was among a package of amendments seeking to protect certain sectors, particularly health and social care providers including GPs, dentists, pharmacists, social care organisations and hospices, from the full effect of the new rates. By rejecting the Lords amendments, the government confirmed that those independent contractors and charitable providers will not receive the same direct relief that central government departments, local authorities and public corporations will receive to offset their increased costs.

Labour MPs voted unanimously in favour of rejecting the Lords amendment, with 282 Labour and 32 Labour and Co-operative members supporting the government position and none voting against. Conservatives (96), Liberal Democrats (62), the Scottish National Party (8), Reform UK (5), Plaid Cymru (4), the Green Party (3) and the Democratic Unionist Party (3) all voted against the government. Two independents voted with the government and six against. There were no notable cross-party rebellions within Labour's ranks. The vote represents a stage in the parliamentary process known as ping-pong, in which the two Houses exchange disagreements over amendments until one House accepts the other's position or a compromise is reached.

How They Voted

Government position: Aye

Labour PartyWhipped Aye

282 Aye/0 No

Conservative and Unionist PartyWhipped No

0 Aye/96 No

Liberal DemocratsWhipped No

0 Aye/62 No

Labour and Co-operative PartyWhipped Aye

32 Aye/0 No

Independent

2 Aye/6 No

Scottish National PartyWhipped No

0 Aye/8 No

Reform UKWhipped No

0 Aye/5 No

Plaid CymruWhipped No

0 Aye/4 No

Democratic Unionist PartyWhipped No

0 Aye/3 No

Green Party of England and WalesWhipped No

0 Aye/3 No

Traditional Unionist Voice

0 Aye/1 No

Ulster Unionist Party

0 Aye/1 No

What They Said in the Debate

Gareth Davies

Conservative · Grantham and Bourne

Opposed

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.

Voted No

Daisy Cooper

Liberal Democrat · St Albans

Opposed

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.

Voted No

Dame Caroline Dinenage

Conservative · Gosport

Opposed

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.

Voted No

Wendy Morton

Conservative · Aldridge-Brownhills

Opposed

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.

Voted No

Dave Doogan

SNP · Angus and Perthshire Glens

Opposed

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.

Voted No

James Murray

Labour · Ealing North

Supportive

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.

Voted Aye

Dr Jeevun Sandher

Labour · Loughborough

Supportive

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.

Voted Aye