Incorporating the Variety Artistes' Federation
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Abolition of Class 2 national insurance contributions delayed

7 November 2017

After much lobbying, the union and partner organisations have convinced the government to delay implementing its plans to abolish Class 2 national insurance contributions (NICs)  plans that would lead to the lowest earning self-employed members paying 500% more in voluntary contributions.

Currently, self-employed workers earning below £6025 per year (the Small Profits Threshold) can pay voluntary National Insurance contributions of £2.85 per week. This makes them eligible for vital contributory benefits, such as the State Retirement Pension and Employment Allowance Support

Plans to scrap the Class 2 NICs would see the lowest earners forced to pay Class 3 NICs — amounting to £14.25 per week (at current rates) ­— if they wished to retain these benefits.

The plans are being shelved until April 2019 whilst further consultation takes place with Equity and other organisations.

The union looks forward to further engaging with the government on this in the coming months.

You can find the Exchequer Secretary to the Treasury Andrew Jones’s full statement here

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