B

Baroness Kramer (LD)

Speaking in the House of Lords on 21 January 2025

Debate

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Contribution

Maybe I can be helpful by using the Library note on this occasion and a quote that it has from the OBR. The paragraph is headed “Labour supply”: “The OBR expects workers and firms, respectively, may reduce labour supply and demand in response to lower wages and higher employer costs.” That is a reference to these changes, including the NICs. “It anticipates the measures in the bill may reduce labour supply by around 0.2%, or a little over 50,000 on an average-hours equivalent … basis, by 2029/30”. Perhaps that quote about the OBR is helpful in the context of the conversation going on at the moment.

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