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Lords complete detailed check of National Insurance Contributions Bill

11 January 2022

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Members of the Lords completed detailed examination of the National Insurance Contributions Bill in committee stage on Monday 10 January.

The National Insurance Contributions Bill aims to:

  • introduce national insurance relief for employers based in free port sites and employers of ex-service personnel

  • provide exemptions for those in COVID-19 self-isolation support schemes

  • create provisions for anti-tax avoidance initiatives.

Line by line examination

Committee stage is the first chance for line by line examination of the bill.

Proposed changes

Members speaking at committee stage put forward changes (PDF) (amendments) to the bill to be discussed.

The amendments covered a range of subjects, including:

  • ensuring employers have declared the beneficial ownership of goods or assets in the freeport before being eligible for zero-rate contributions

  • altering the conditions attached to zero-rate relief for armed forces veterans.

The committee stage of this bill took place in Grand Committee, away from the chamber. In Grand Committee, any member can take part and decisions on amendments (changes) can be made, but no votes can take place.

Get involved

Watch and read the debate

Catch up on Parliament TV or read the transcrip in Lords Hansard.

Explore further information

Read background on the bill in the House of Lords Library briefing.

Next steps

Report stage, an opportunity to closely scrutinise elements of the bill and make changes, is yet to be scheduled.

What's happened so far?

Second reading: Wednesday 1 December 2021

Members discussed the main issues in the bill during the second reading debate. These included:

  • how the bill will affect the finacial state of the National Insurance Fund
  • the economic impact on fully taxed areas
  • extending the proposed relief period (12 months) for ex-servicepeople.

Members speaking

Viscount Younger of Leckie (Conservative), government whip and the bill's sponsor in the Lords, opened the debate and respond on behalf of the government.

Members speaking in the debate included:

  • Lord Bilimoria (Crossbench), president of the Confedertion of British Industry
  • Lord Davies of Brixton (Labour), director and actuary of Union Pension Services Limited
  • Baroness Kramer (Liberal Democrats), member of the Social Market Foundation Advisory Board
  • Lord Sikka (Labour), senior adviser to the Tax Justice Network.

Find out more about the issues discussed: catch up on Parliament TV or read the Lords Hansard transcript.

Image: Adobe Stock