Employers' NICs to be frozen for five years
29th May 2015 | News
The Queen’s Speech is to include legislation blocking tax rises including class one employer and employee National Insurance Contributions (NICs) for the full length of the parliament.
The Government will introduce a raft of new business and benefits reforms as well as a doubling of free childcare within the Speech, which contains 26 bills.
In addition, reforms to trade union laws are expected along with the potential for employers to perform background checks on whether an employee is considered an extremist.
However, the speech does not include any reference to the volunteering election pledge or reform of the Human Rights Act which would impact workplace discrimination.
The Government is targeting savings of at least £10bn during the next five years by slashing red tape as part of the new Enterprise Bill.
A key pledge in the Conservatives’ pre-election manifesto, reforms to free childcare would give parents access to 30 hours-a-week for three to four year-olds. Prime Minister, David Cameron confirmed the £350m annual cost of this would be funded via tax relief reductions on pension contributions.
The Government will also be freezing the primary rates of the majority of working-age benefits, tax credits and child benefit as part of a Full Employment and Welfare Benefits Bill.
Under the terms of the new bill, the level of the benefit cap will be reduced from £26,000 to £23,000. Meanwhile, Personal Allowance will also be raised to £12,500 to guarantee people working 30 hours a week on the National Minimum wage do not pay any income tax.
Mr Cameron believes that the UK now stands “on the brink of something special”.
“We have a golden opportunity to renew the idea that working people are backed in this country; to renew the promise to those least fortunate that they will have the opportunity for a brighter future; and to renew the ties that bind every part of our United Kingdom,” added Cameron.
“We now have the mandate to deliver that renewal. And it starts with this Queen’s Speech.”