Queen’s Speech – National Insurance Bill announced
U-turn confirmed. In yesterday’s Queen’s Speech, the government was keen to stress that it would not include the increases in the Class 4 NI rates for self-employed people originally announced in Budget 2017. The Chancellor came under fire in the spring for breaking a 2015 manifesto pledge and later did a U-turn stating there would be no NI increases during this Parliament.
What will the NI bill contain? The background notes to the speech state that the government will legislate for the “National Insurance contribution (NICs) changes announced in the 2016 Budget and the 2016 Autumn Statement”. In the 2016 Budget it was announced that Class 2 NI (currently £2.85 per week on profits over £6,025) would be scrapped for the self-employed from April 2018. After April 2018 Class 4 NI will be reformed so that self-employed people can continue to build entitlement to the state pension and other contributory benefits.