National Insurance Contributions Bill
Orders of the Day
Angela Eagle (Parliamentary Secretary, HM Treasury; Wallasey, Labour)
My hon. Friend is right. I suspect that Opposition Members will have to explain to their constituents, perhaps over the Christmas period, why they went into the Lobby to vote against taking 200,000 children out of poverty and 600,000 pensioners out of tax.
As the Bill goes into Committee, clearly a number of points will have to be debated at greater length. I am sure that my right hon. Friend the Financial Secretary will look forward to having those debates. However, let me once more remind the House what the Bill will achieve. First, it will allow us to deliver a package of changes that will create one of the simplest personal tax structures of any developed country so that the two main rates of income tax apply to the same bands of income as the two rates of national insurance contributions for the first time in our history. Secondly, the Bill returns the timetable for the introduction of a simple flat rate state second pension scheme to around 2030, as recommended by the Pensions Commission, rather than its being delayed by several years. The Bill simplifies our personal tax system and it brings forward the simplification of our state second pension system. I commend it to the House.