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Government announces U turn on NI class 4 contributions hike

15 March 2017

The Chancellor has announced that measures to increase Class 4 National Insurance contributions from 9% to 10% in April 2018, and to 11% in April 2019 will not now go ahead.

Disability Rights UK welcomes this decision. We raised concerns about this proposal as disabled people are more likely than non-disabled people to be self-employed and so would have been proportionally harder hit by this increase.

In a letter to Tory MPs, Chancellor of the Exchequer Philip Hammond said:

"It is very important both to me and to the Prime Minister that we are compliant not just with the letter, but also the spirit of the commitments that were made. In the light of what has emerged as a clear view among colleagues and a significant section of the public, I have decided not to proceed with the Class 4 NIC measure set out in the Budget."

[Source: Independent online]