National Insurance Contributions Holiday Debate
Full Debate: Read Full DebateBaroness Kramer
Main Page: Baroness Kramer (Liberal Democrat - Life peer)Department Debates - View all Baroness Kramer's debates with the Department for International Development
(5 years, 5 months ago)
Lords ChamberMy Lords, setting aside the irony that this is a unfulfilled manifesto commitment, does the Minister recognise that small businesses, which are often the best place for someone from a disadvantaged community to start work because of the support available, often find it costly to take on someone who needs that kind of additional support? For those firms, this critical amount of a one-year holiday from national insurance contributions, which might not matter to a big company, is absolutely pivotal in making it possible for them to take on this extra load. Therefore, will he push for this element of the manifesto to be carried through?
The noble Baroness will recall that, when we were in coalition Government, we introduced the employment allowance, which effectively said that the first £3,000 of national insurance contributions for small businesses did not apply. We have also abolished national insurance for those on apprenticeships under the age of 25 and abolished national insurance for those under the age of 21. We are doing a significant amount in this area, but I accept that we need to do more.