Introduction
2. The Conservative Manifesto for the General Election in May 2015 included a commitment not to increase the rates of NICs, income tax or Value Added Tax ("VAT"). The Prime Minister made a commitment to legislate within 100 days after the General Election to rule out an increase in these rates.
3. Since April 2009 the UEL (the level of earnings up to which employees pay NICs at 12% and thereafter 2%) has been aligned with the point at which the higher rate of income tax is paid. This alignment has been made by convention. The Prime Minister also made a pledge not to increase the UEL above the HRT for tax for the duration of this Parliament.
4. For further information on the policy background to NICs, please see annex A.