Mar 8, 2017
National Insurance: Breaking a pledge?
The claim: The government's increase in National Insurance contributions is a breach of its 2015 manifesto. Reality Check verdict: The government did promise in its manifesto not to raise National Insurance contributions, and this is an increase, so it has broken that pledge. In the Conservative Party's manifesto for the 2015 general election, it promised: "We will not raise VAT, National Insurance contributions or income tax". Currently, self-employed people pay two types of National Insurance: Class 2 and Class 4.Class 2 contributions are a flat rate paid by self-employed workers making a profit of more than £5,965 a year. The government did pass an act of Parliament in 2015, called the National Insurance Act, which prevented it from raising National Insurance rates, although that will not be breached because it referred to Class 1 National Insurance only, which is paid by employees, not by the self-employed.
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