Overview

This bill amends the National Insurance Contributions Bill to zero-rate secondary Class 1 National Insurance contributions for apprentices under 25. This means employers will no longer 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 and the Social Security Contributions (Northern Ireland) Act 1992. This section exempts employers from paying secondary Class 1 National Insurance contributions for apprentices under 25.

The Treasury is granted the power to set an upper secondary threshold for these contributions. If an apprentice's earnings exceed this threshold, the standard secondary Class 1 contributions apply to the amount exceeding the threshold. The Treasury can also adjust this threshold or the age limit via regulations, subject to parliamentary approval.

The bill also mandates parliamentary approval of any statutory instrument amending or repealing legislation through regulations under the new section.

Government Spending

The bill will lead to a reduction in government revenue from National Insurance contributions. The exact figure is not specified in the bill, but it will depend on the number of apprentices under 25 employed and their earnings.

Groups Affected

• Employers: Will benefit from reduced National Insurance costs for apprentices under 25, potentially encouraging them to hire more apprentices.
• Apprentices under 25: Will not directly benefit financially, but the measure could increase apprenticeship opportunities.
• The Treasury: Will experience a reduction in National Insurance revenue.
• Parliament: Will have greater oversight of regulations made under this bill.

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