Government defends NI exemption in UK-India trade deal
Summary
The UK and India have agreed on a trade deal that extends the time Indian workers can avoid paying UK national insurance from one to three years, meaning they pay social security in their home country instead. The UK government says this will not harm British workers, but some opposition politicians worry it might.Key Facts
- The UK and India agreed to extend a social security exemption for Indian workers from one year to three years.
- The exemption means Indian workers on short-term visas will pay social security in India, not the UK.
- Business Secretary Jonathan Reynolds said the trade deal will not hurt British workers because of existing agreements preventing double taxation.
- Opposition leaders argue that the exemption could make it cheaper to employ Indian workers over British ones.
- Kemi Badenoch expressed concerns about the exemption when she was business secretary.
- Jonathan Reynolds emphasized that the deal will spur economic benefits for the UK, like faster growth and higher wages.
- Indian workers will still need to pay the NHS immigration surcharge and won't get benefits from the UK National Insurance system.
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