Class 4 National Insurance Contributions

Debate between Lord Young of Cookham and Lord Scriven

Wednesday 15th March 2017 Lords Chamber

[Lord Young of Cookham]

If the noble Lord is saying that if you make a bad decision it is never too late to undo it, I understand that. On his other point, there is an argument for harmonising tax and national insurance; this debate has been going on for some time. It is not without its consequences. National insurance is a contributory benefit—you contribute to your state retirement pension. If you have retired and drawn your pension, what is the argument for continuing to make national insurance contributions if your pension is not going to go up as well? Harmonising is a complex issue, which we will of course continue to look at. But I have to say, it is not something that the Labour Government did while they were in office.

[Lord Scriven (LD)]

My Lords, I draw the House’s attention to my interests as listed in the register, particularly as a member of Sheffield City Council. As the national insurance contribution changes were widely briefed by the Government to pay for extra social care funding and business rates support, will the Minister now give an absolute guarantee that local government budgets will not be raided to pay for the gap that has now been made by this U-turn?

[Lord Young of Cookham]

I think I have already given that commitment: the support that we announced for local government in the Budget will go ahead and will not be affected by the announcement today.