Government reverses Class 2 abolition

After lobbying strongly on this for over two years, Equity is delighted that the government has announced that it will not be proceeding with the abolition of Class 2 national insurance contributions during this Parliament.

Alan Lean, Equity’s Tax and Welfare Rights Officer, said: “This is excellent news for Equity members and reflects the government's concern on the impact their proposals would have had on the low paid self-employed. Equity gave detailed evidence on this, both in its original consultation response and in subsequent meetings with Treasury officials. We are particularly pleased that members on low profits will no longer face a 500% increase in the cost of making voluntary national insurance payments which would have been the case had these proposals gone ahead.”

Click here to read the government's written statement.