National Insurance Contributions (Secondary Class 1 Contributions) Bill: Reasoned Amendment to Second Reading
186Ayes
330Noes
Defeated · majority 144 · Government won130 did not vote
646 Members · Aye 186 · No 330 · DNV 130 · grey dots in centre are abstentions
Analysis
Commons
Commons
Parliament voted on 3 December 2024 on a Conservative reasoned amendment (Division 53) that would have blocked the second reading of the National Insurance Contributions (Secondary Class 1 Contributions) Bill. A reasoned amendment is a procedural motion to decline to give a bill its second reading, in this case on the grounds that raising employer National Insurance was harmful. The amendment was defeated by 330 votes to 186, allowing the bill to proceed. The bill makes three changes to employer National Insurance from 6 April 2025. It raises the rate employers pay from 13.8% to 15%, lowers the per-employee earnings threshold at which liability begins from £9,100 to £5,000 per year, and doubles the Employment Allowance from £5,000 to £10,500 while extending eligibility to more employers. The Government described these as necessary fiscal decisions to stabilise public finances and fund public services. Critics argued the combined effect of the rate rise and the lower threshold would suppress wages, cost jobs, and place serious burdens on small businesses and charities. The vote split sharply along party lines. All 326 Labour and Labour Co-operative MPs who voted backed the bill, and all opposition parties with no vote recorded in the No lobby voted in favour of the amendment: 93 Conservatives, 63 Liberal Democrats, 9 SNP members, 7 Reform UK members, and smaller groupings from Plaid Cymru, the DUP, and others. Five independents voted Aye and four voted No. There were no Conservative or Liberal Democrat MPs in the No lobby.
Voting Aye meant
Support blocking the employer NICs rise, arguing it will suppress wages, cost jobs, and damage small businesses and charities despite the doubled Employment Allowance.
Voting No meant
Support proceeding with the Bill, accepting the employer NICs increase as a necessary fiscal decision to repair public finances and fund public services, with the Employment Allowance doubling protecting smaller employers.
Each row is one party. The stacked bar gives the within-party split of Aye / No / Absent; the columns on the right give the raw counts. The whip column shows the published party position — “Free vote” means the whip was formally removed for this division.
Party
Whip
Aye / No / Abs
Aye
No
Abs
Labour Party
Whipped No
0
294
67
Conservative and Unionist Party
Whipped Aye
93
0
23
Liberal Democrats
Whipped Aye
62
0
9
Labour and Co-operative Party
Whipped No
0
32
10
Independent
—
6
4
4
Scottish National Party
Whipped Aye
9
0
0
Reform UK
Whipped Aye
7
0
0
Sinn Féin
—
0
0
7
Democratic Unionist Party
Whipped Aye
4
0
1
Green Party of England and Wales
—
0
0
4
Plaid Cymru
Whipped Aye
4
0
0
Social Democratic and Labour Party
—
0
0
2
Your Party
—
0
1
1
Alliance Party of Northern Ireland
—
0
0
1
Restore Britain
—
1
0
0
Speaker
—
0
0
1
Traditional Unionist Voice
—
1
0
0
Ulster Unionist Party
—
1
0
0
Source · Hansard · UK Parliament Votes API · whip status from announced positions; “free vote” indicates the whip was formally removed
Defends the Bill as necessary to fix public finances and fund NHS; argues it protects working people (no income tax/VAT/employee NI rises) and small businesses (via doubled employment allowance to £10,500), while businesses with broadest shoulders must contribute.Labour · Voted no · Read full speech (3,810 words) →
Opposes the Bill as breaking Labour's manifesto promise; argues it is a regressive 'jobs tax' that will suppress wages, reduce employment, and harm small businesses, charities, GPs, and hospices without justification.Conservative · Voted aye · Read full speech (2,610 words) →
Opposes the measure as undermining growth; calls for exemptions for health and care providers; urges consideration of alternative revenue sources (bank tax, gambling duty, digital services tax) that target the wealthy rather than businesses.Liberal Democrat · Voted aye · Read full speech (1,469 words) →
Challenges the Government distinction between pay packets and suppressed wages/lost jobs; notes Scottish hospitality faces particular hardship without business rates relief unlike England.SNP · Voted aye · Read full speech (1,568 words) →
Supports the Bill as delivering record NHS investment (£25.6bn), teacher recruitment, and school rebuilding; argues Opposition want services without paying for them and lack credible alternatives.Labour · Voted no · Read full speech (1,539 words) →
Defends the Bill in context of Conservative failure; highlights the £22bn fiscal black hole and need to avoid austerity; attacks Opposition for inconsistency (they voted for health levy in 2021).Labour · Voted no · Read full speech (1,279 words) →
Opposes as breaking manifesto; reports constituents in hospitality cannot see viable path forward; questions whether Government understood the fiscal situation during transition period.Conservative · Voted aye · Read full speech (1,002 words) →
Concerned about impact on Welsh public services (30% workforce in public sector, £380m cost); seeks assurance that reimbursement to local authorities will be full and recurring.Plaid Cymru · Voted aye · Read full speech (1,408 words) →
Sources
Division dataUK Parliament Votes API
DebateHansard · Commons
Stance analysisAI analysis · Claude 4.x
LicenceOpen Parliament Licence v3.0