The Government has announced that it will not proceed with the abolition of Class 2 National Insurance contributions (NICs) during this Parliament.

The announcement was made on 6 September 2018. The abolition of Class 2 NIC was originally intended to simplify the tax system for the self-employed, however, implementation of the policy was delayed in November 2017 to consider concerns relating to the impact on self-employed individuals with low profits.

The Government has since engaged with interested parties to explore the issue, and further options for addressing any unintended consequences. A significant number of self-employed individuals on the lowest profits would have seen the voluntary payment they make to maintain access to the State Pension rise substantially. Having listened to those likely to be affected by this change the Government has concluded that it would not be right to proceed during this Parliament.