Lords oppose National Insurance tax increase for health workers

Members of the House of Lords are working to block a government plan to increase National Insurance Contributions. The proposal suggests a rise from 13.8% to 15% and aims to lower the income threshold from £9,100 to £5,000. Recently, the Lords rejected the government's NIC plans multiple times. They sought exemptions for health and social care workers, including hospices and GP practices, but MPs turned down these proposals. On Monday, the Lords passed a new measure that would let ministers create exemptions later, keeping the NIC plans in a state of uncertainty. Liberal Democrat peer Lord Scriven described his amendment as an "olive branch" to resolve issues with the government. He emphasized that this does not prevent the government from raising funds but allows for quick action concerning potential future impacts on health and social care. Labour's Lord Livermore warned that exempting certain groups from NICs could lead to higher borrowing or reduced spending. He mentioned the government is providing £100 million to hospices and additional support for terminally ill children. On the same day, the Lords approved more amendments to the NIC Bill. They voted to create exemptions for small businesses and organizations, and required the Chancellor to assess the tax rise's impact on various sectors, including charities and nurseries. The debate will continue as the bill moves back and forth between the Commons and the Lords.