National insurance contributions act

Status of the bill: Enacted

Main purpose of the bill:

To make provision for and in connection with increasing rates of national insurance contributions and a regional secondary Class 1 contributions holiday for new businesses.

Main points of the bill:

Provides for an increase in the rates of national insurance contributions from 6 April 2011:
The main rates of Class 1 and Class 4 NICs to be increased by 1 per cent to 12 per cent and 9 per cent respectively.

Class 1 secondary rate of NICs to be increased by 1 per cent to 13.8 per cent and will also apply to Class 1A and Class 1B NICs.

The additional rates of primary Class 1 and Class 4 NICs to be increased by 1 per cent to 2 per cent.
Provides for a substantial reduction in employer NICs for new businesses set up in specified areas during a three year qualifying period:

Within the qualifying period, the new business employers will not have to pay the first £5,000 of Class 1 employer NICs due in the first twelve months of employment for each of the first 10 employees hired in the first year of business. 

Three English regions are excluded from this provision. They are Greater London, the South East Region and the Eastern Region  

Progress of the bill:

The National Insurance Contributions Bill was included in the Queen's Speech on 25th May 2010.
Commons:

First Reading: 14.10.10 Second Reading: 23.11.10 Committee Stage: 02.12.10 07.12.10 09.12.10 Report Stage: 13.01.11 Third Reading: 13.01.11

Lords:

First Reading: 13.01.11 Second Reading: 02.02.11 Committee Stage: 28.02.11 Report Stage: 14.03.11 Third Reading: 22.03.11

Royal Assent: 22.03.11