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Social Security Contributions and Benefits Bill - Clause 6
06 September 2021
Lead MP
Richard Thomson
Debate Type
Bill Debate
Tags
DefenceTaxationEmploymentBenefits & Welfare
Other Contributors: 13
At a Glance
Richard Thomson raised concerns about social security contributions and benefits bill - clause 6 in the House of Commons. Other MPs contributed to the debate.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
This amendment proposes a new clause that would provide a zero-rate of secondary class 1 national insurance contributions for employers who take on veterans. This initiative aims to support employment opportunities for armed forces veterans by reducing the financial burden on employers when hiring these individuals.
Rosie Winterton
Lab
Sheffield Central
Introduced procedural matters and outlined limitations of the debate, emphasising that it is restricted to discussing amendments and new clauses.
Kevin Hollinrake
Con
Thirsk and Malton
Asked questions about the drafting of new clause 1 regarding 'green manufacturing companies' and questioned whether polluting activities could still qualify for exemption if a company manufactures wind turbines or electric vehicles.
Sarah Olney
Lib Dem
Richmond Park
Proposed an amendment to quadruple the employment allowance from £4,000 to £16,000 for two years to stimulate economic activity and support small and medium-sized enterprises. Emphasised the need for stimulating growth in new industries such as the green economy.
Mike Wood
Con
Kingswinford and South Staffordshire
Asked about the cost implications of Sarah Olney's proposal on the Exchequer.
James Murray
Lab Co-op
Ealing North
Represented the Opposition and expressed support for clauses 1 to 5, which introduce a new zero rate of secondary class 1 national insurance contributions for employers who take on employees in a freeport. He also noted that clauses 6 and 7 provide a similar benefit for armed forces veterans.
Nigel Evans
Con
Bethnal Green and Bow
Emphasised the need to focus on the amendments before the House, reminding members that there will be an opportunity for a broader discussion during Third Reading.
Jesse Norman
Con
Hereford and South Herefordshire
Argued against new clause 1, stating that it would introduce major changes to tax system without proper consultation or costing. He also opposed new clauses 3 and 4, arguing they are unnecessary and costly without a clear funding source. Additionally, he highlighted the existing government initiatives supporting green manufacturing.
Jim Shannon
DUP
Strangford
Questioned the Minister about Northern Ireland’s £735 bonus payment, which includes tax and national insurance contributions for health and social care workers. He asked if the Minister would replicate this in the rest of the UK.
Jesse Norman
Con
Hereford and South Herefordshire
Mr Norman outlined the four main provisions of the Bill: NIC relief for employees in freeports to attract businesses and regenerate communities; NIC relief for employers hiring veterans to support employment prospects; exemption for test and trace support payments from self-employed NICs to ensure consistent treatment with employed counterparts; and changes to disclosure of tax avoidance schemes legislation to enable HMRC to act decisively. He emphasised the bill's role in supporting regional growth, boosting veteran employment, and strengthening measures against tax avoidance.
James Murray
Lab Co-op
Ealing North
Critiques the Bill's approach to veteran employment relief, arguing it should support long-term durable employment. Questions why the relief is for only 12 months when freeports receive three years of relief. Criticises lack of clarity on timing and public consultation regarding relief duration. Welcomes the exemption for self-isolation support scheme payments but requests clarification from Ministers. Calls for better understanding of progress made in tackling tax avoidance schemes.
Intervened to highlight the importance of helping veterans settle into civilian life, especially during the first 12 months post-service. Acknowledges that targeted help can prevent servicemen from re-joining forces due to inability to find suitable employment.
Acknowledged some positive aspects but expressed regret that the Bill could have done more, especially considering national insurance's disproportionate impact on young and low-paid individuals. Criticised blanket increases in NI as exacerbating inequalities. Called for Government reflection to address these issues.
Jim Shannon
DUP
Strangford
Expressed gratitude to the Minister for bringing forward the Bill and supporting it. Raised concerns about tax on the covid thanks package, specifically in Northern Ireland where staff receive £735 but are taxed at 20% and pay national insurance at 12%, leaving them with approximately £500. Welcomed comments about freeports and supported measures for veterans' support in the first year after service. Emphasised that Northern Ireland is part of the UK, mentioning issues related to European healthcare representation.
Shadow Response
James Murray
Shadow Response
The Opposition supports the initiative to support employment opportunities for armed forces veterans by reducing the financial burden on employers.
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