National Insurance Contributions 2024-12-03
2024-12-03
TAGS
Response quality
Questions & Answers
Q1
Direct Answer
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Context
An assessment is requested regarding the potential impact of an increase in employer national insurance contributions.
What assessment has been made of the potential impact of the proposed increase in employer national insurance contributions on public sector organisations?
The Government have set aside funding to support the public sector with the additional cost of employer national insurance contributions. The amounts are £4.7 billion in 2025-26, £4.7 billion in 2026-27, £4.8 billion in 2027-28, £4.9 billion in 2028-29 and £5.1 billion in 2029-30.
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Assessment & feedback
Response accuracy
Q2
Partial Answer
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Context
Labour's increase in national insurance will cost Dundee city council a minimum of £7.3 million and an additional £500 million across Scotland.
Will the Minister confirm that the full cost of the national insurance contributions increase to the delivery of public services in Scotland will be reimbursed?
The funding includes support through the Barnett formula. If there is a higher cost in Scotland, it may relate to decisions about the size of the public sector.
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Assessment & feedback
Confirmation of full reimbursement was not given.
Response accuracy
Q3
Partial Answer
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Context
A major housing association in the constituency will have to shoulder three quarters of a million pounds in increased national insurance contributions.
How will the Minister reassure my constituents patiently waiting for much-needed social housing when they realise that they will have to wait longer because of the Chancellor's decisions?
The decision was necessary, but we are committed to building 1.5 million homes over this Parliament, focusing on social and affordable housing.
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Assessment & feedback
Reassurance for delays in social housing was not provided.
Response accuracy
Q4
Partial Answer
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Context
The shadow Chancellor toured TV studios stating the Conservative party did nothing wrong in government.
Will my hon. Friend confirm that the reason for the changes to national insurance is precisely to plug the £22 billion gap caused by the Conservatives?
The problem with Conservative Members is that they are happy to say they want more funding for the NHS but not prepared to pay for it. We have taken tough decisions to ensure public services and fix finances.
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Assessment & feedback
Confirmation of changes necessity was evaded by criticizing opposition.
Response accuracy
Q5
Partial Answer
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Context
Hospices such as Julia's House are concerned by the planned increase in national insurance contributions.
What reassurance can the Minister give to hospices such as Julia's House, which serves my constituents?
Many hospices are independent charities and can access employment allowance of £10,500 per year, business rates relief, and gift aid. Hospices with statutory obligations should discuss contracts with their integrated care boards.
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Assessment & feedback
Specific reassurance for hospices was not provided.
Response accuracy
Q6
Partial Answer
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Context
The House will vote on the Government's £25 billion national insurance tax hike.
Will the Minister confirm exactly which public sector organisations will be compensated?
Public sector organisations are defined by the Office for National Statistics. Departments and other public sector organisations will be reimbursed.
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Assessment & feedback
Exact names of compensated organisations were not provided.
Response accuracy
Q7
Partial Answer
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Context
The Office for Budget Responsibility, Institute for Fiscal Studies, and Resolution Foundation all agree that the tax hike will affect working people.
Why is it that Labour always leaves office with unemployment higher than when it entered?
The employment level is predicted to rise from 33.1 million to 34.3 million by 2029 according to the OBR, indicating an increase in employment over this Parliament.
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Assessment & feedback
Specific reasons for higher unemployment under Labour were not provided.
Response accuracy
Q8
Partial Answer
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Context
Citizens Advice in St Albans reports that changes to national insurance contributions will negatively affect their part-time staff and increase costs despite the rebate not covering all expenses.
Citizens Advice in my constituency says that the changes to national insurance contributions will hit hard because they employ mostly part-time staff, going from paying nothing to the full amount. The increased rebate does not cover this impact. Will the Chancellor look again at the effect on part-time workers?
We recognise that we have taken a tough decision to increase the rate and broaden the base through changes to the secondary threshold. Public services need support, but these decisions are necessary for funding public services.
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Assessment & feedback
Reviewing the impact of national insurance contribution changes on part-time workers specifically
Welcome The Work Done By The Organisation Mentioned
Public Services Need To Be Stronger
Response accuracy
Q9
Partial Answer
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Context
Hightown Housing Association estimates that the national insurance contribution changes will cost £860,000 per year, affecting their ability to pay interest on a loan for social homes.
The extra costs of national insurance contributions will be £860,000 annually for Hightown Housing Association. This money would have covered the interest on a loan for around 60 social homes. Will the Chancellor conduct an impact assessment to see how these changes affect the number of social homes?
We have taken tough decisions for funding ambitious plans in NHS, education, and housing. The impact of these changes is detailed in the tax information and impact note published alongside legislation.
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Assessment & feedback
Conducting a specific impact assessment on social homes due to national insurance contribution changes
Not All Are Prepared To Pay For Public Services
Impact Assessments Are Published In Tax Information And Impact Notes
Response accuracy