B

Baroness Neville-Rolfe (Con)

Speaking in the House of Lords on 4 February 2025

Debate

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Contribution

I thank the Minister for his response. I hope that in the light of what has been said today and on previous days, the Government will look at the impact of these NICs changes on our early years sector. When we were in government, we took steps to support the early years sector, and we know that the national insurance increase is going to be a significant setback. My noble friend Lady Lawlor talked about the numbers of providers spread across the country, which play a huge part in the induction to the world of education and in helping young people to get the right kind of start in life. The very least the Government can do is to look at the impact note again and produce an assessment of the impact of the policy on the early years sector in particular, not just the overall economic impact. We have heard from the Minister on several occasions that they have produced a note, but it is a macroeconomic—an overall—note, while what we have here are very big changes in the economy affecting individual sectors, some of them very badly. There does not seem to be any readiness to look at the impact in those sectors and to find solutions, whether through national insurance changes or some other way. I suggested the employment allowance as another route. The noble Lord will also recall that when in government we took steps to increase the supply of early years provision by expanding the childminding sector and encouraging the establishment of new nurseries alongside our expansion of the 30-hours free childcare policy. Without an assessment of the impact of these changes, how can the Government be sure that they will be able to deliver on the ambitious plans that the Minister set out to expand free childcare hours for hard-working families? I think there is a measure of agreement on objectives, but we need to find a way to get there. These are important questions, and Ministers need to answer them before we get to Report. It is intolerable that we are pressing ahead with a jobs tax without a full assessment of the policy. We have had some macro figures, now broken down into three chunks, but it is very difficult for us to know what the individual effect is on different sectors. This is a serious matter. Working families across the country are very concerned. My worry is that the noise of concerns on something such as early years will increase as April comes and early years providers discover just what sort of hole they are in, but in the interests of time, I beg leave to withdraw my amendment.

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