Equalities Watchdog Criticizes Reeves Over Insufficient National Insurance Raid Assessment

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Chancellor Rachel Reeves has come under fire from the Equality and Human Rights Commission (EHRC) for failing to adequately assess the impact of her National Insurance (NI) policy on workers. The policy, introduced as part of the latest Budget, underwent an evaluation by HM Revenue & Customs (HMRC) on behalf of the Treasury. However, the findings were initially withheld and only released after mounting pressure.

 

In a pointed letter to the Treasury and HMRC, the EHRC expressed concern, stating that the assessment “does not demonstrate how HMRC is considering the potential equality impact of the policy and is not by itself likely to be sufficient to meet the requirements of the Public Sector Equality Duty.” The report claimed the NI raid would have no equality impact since it targets businesses rather than individuals. However, the Office for Budget Responsibility (OBR) contradicted this, warning that 80% of the financial burden would ultimately fall on workers through reduced wages.

 

The Institute for Fiscal Studies (IFS) added further criticism, highlighting that the adverse effects would disproportionately affect women, who are overrepresented among lower-paid workers. In contrast to the NI policy, all other major Budget measures were accompanied by comprehensive Tax Information and Impact Notes (TIINs) on the day of the announcement.  

 

Government officials initially stated that the NI policy’s assessment would be published next year alongside finalized legislation. However, after *The Telegraph* reported the withholding of the document, it was swiftly released in response to a Freedom of Information request. The revealed assessment also disclosed that seven out of ten disabled pensioners would face reduced winter fuel payments due to cuts implemented by the Chancellor.

 

The incident has drawn sharp criticism from political opponents. Conservative Party members labeled the situation “appalling” and suggested that Reeves might have violated the ministerial code. Gareth Davies, the shadow financial secretary to the Treasury, condemned the handling of the policy, saying, “We have been sounding the alarm over the damaging impacts of Labour’s National Insurance jobs tax, and now the equalities watchdog is doing just the same. This broken promise not to tax working people will harm small businesses, depress wages and drive up prices for consumers—impacts it seems the Government has failed to even consider with their substandard assessment, like many other of their policies.”

 

The controversy underscores growing scrutiny over the government’s handling of economic policies, particularly their effects on vulnerable populations and compliance with equality standards. Critics are now calling on Reeves and her team to provide a more detailed analysis of the NI raid’s full implications.

 

Based on a report by Daily Telegraph 2024-11-21

 

 

 

[JonnyF]

She is clueless. Totally unqualified for the position like most of the Labour cabinet. Working in admin at a bank does not qualify you to be Chancellor. 

 

She even lied on her CV to appear more credible. 

 

https://www.telegraph.co.uk/politics/2024/11/18/what-rachel-reeves-said-on-her-cv-vs-her-actual-experience/

 

This government is a disaster. 

 

[RichardColeman]

Just Liebour stealing as much much as they can from anyone that is not a Liebour donor.

 

Only hope that those fools that voted liebour are enjoying raids on their income, loss of winter fuel payments and potentially the loss of their jobs.

 

Vote stupid party, get stupid red politicians