Forties People

The Chartered Institute for Personnel and Development (CIPD) has backed the Conservative Party's plan to scrap the government's proposed National Insurance increase.

Chancellor Alistair Darling outlined plans in last week's (24th March) Budget to raise National Insurance contributions by one per cent from April 2011 for workers earning more than £20,000 a year.

But shadow chancellor George Osborne has pledged to block any such measure, claiming that his party's alternative policy would benefit "seven out of ten" working people.

Under Osborne's plan - which would be funded by cutting £6 billion from the next financial year's public spending bill - the higher rate would be applied solely to people earning more than £45,400.

"Every National Insurance payer earning between £7,100 and £45,400 will be up to £150 better off," said Osborne at a press conference today.

And this has been warmly received by CIPD chief economic adviser John Philpott, who said:

"George Osborne's proposal shows that he has wisely listened to British business and the CIPD welcomes this. The move will be good for jobs."

Posted by James Strang.