Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what financial support is being made available to support people employed under umbrella companies with the increase in National Insurance Contributions from April 2022.

From April 2022 all liable employees, including individuals employed through an umbrella company, will pay the 1.25 percentage point increase in National Insurance contributions (NICs).

NICs is a progressive tax. The Primary Threshold means that the lowest earners do not pay any NICs. The highest earning 15 per cent will pay over half of the revenues raised by the Levy and 6.1 million people earning less than the Primary Threshold (equivalent to £9,880 a year in 2022-23) will be kept out of the Levy.

We recognise the pressures people are facing with the cost of living, and that is why this Government has taken steps to help. This includes reducing the Universal Credit taper rate from 63 per cent to 55 per cent, increasing Universal Credit work allowances by £500 per annum to make work pay, as well as freezing alcohol and fuel duties to keep costs down. In addition to this, the Government has recently announced a package of support to help households with rising energy bills, worth £9.1 billion in 2022-23.