Overview

This bill amends the National Insurance Contributions Bill to zero-rate secondary Class 1 National Insurance contributions for apprentices under 25. This means that employers will no longer have to pay National Insurance contributions for these apprentices, aiming to incentivize apprenticeship hiring.

Description

The bill introduces a new section (9B) to the Social Security Contributions and Benefits Act 1992 (SSCBA 1992) and the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (SSCB(NI)A 1992). This section exempts employers from paying secondary Class 1 National Insurance contributions for apprentices under 25. The Treasury retains the power to set an upper earnings threshold above which the zero-rate contribution will not apply. If earnings exceed this threshold, the standard secondary percentage will apply to the excess. The Treasury also has the power to define "apprentice" and to adjust the age limit (currently under 25) through regulations.

The bill also requires that any statutory instrument amending or repealing an Act's provisions relating to these changes must be approved by both Houses of Parliament.

Government Spending

The bill will reduce government revenue from National Insurance contributions. The exact financial impact is not specified in the bill text but it will depend on the number of apprentices under 25 employed and their earnings.

Groups Affected

• Employers: Will benefit from reduced National Insurance contributions for apprentices under 25, potentially incentivizing them to hire more apprentices.
• Apprentices under 25: Indirectly benefit as the measure may increase employment opportunities.
• The Treasury: Will experience a reduction in tax revenue.
• Parliament: Has increased oversight on the regulations implemented under this bill.

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