Consultation on abolishing Class 2 NICs and introducing a contributory benefit test to Class 4 NICs

11 December 2015

A consultation has been published to explore how a reformed self-employed National Insurance contributions (NICs) system could confer benefit entitlement and the policy choices that government will consider in designing the new contributory benefit tests.

At the Summer Budget 2015 the Government confirmed that it planned to abolish Class 2 NICs and reform Class 4 NICs to introduce a new contributory benefit test.

The ‘Consultation on abolishing Class 2 National Insurance and introducing a contributory benefit test to Class 4 National Insurance for the self-employed' seeks views from self-employed people, agents who act on the behalf of self-employed people and bodies that represent self-employed people. The government particularly welcomes responses from those who pay a special rate of Class 2 – Share Fishermen and Volunteer Development Workers – and other special groups such as Examiners and Ministers of Religion.

This consultation closes on 24th February 2016. The Policy Team will publish a survey to gather member opinion if deemed necessary.