Abolition of class 2 National Insurance halted

The proposed abolition of class 2 National Insurance contributions has been scrapped by the government. The reform was supposed to have taken effect in April but after concerns were raised on the impact it could have on self-employed people with low profits implementation was delayed.

In a statement to MPs Robert Jenrick Exchequer Secretary to the Treasury said: ‘A significant number of self-employed individuals on the lowest profits would have seen the voluntary payment they make to maintain access to the state pension rise substantially. Having listened to those likely to be affected by this change we have concluded that it would not be right to proceed during this parliament given the negative impacts it could have on some of the lowest earning in our society.

‘Furthermore it has become clear that to the extent that the government could address these concerns...