"This government doesn't give a damn about working people."
The UK government has addressed the National Insurance row, dismissing claims that a new trade deal with India could undercut British workers.
Business Secretary Jonathan Reynolds said there was “no situation” in which he would “ever tolerate” British workers being undercut as a result of a trade agreement.
Under the terms of the trade deal, Indians coming to the UK to work will be exempt from paying National Insurance for three years.
Workers will only pay social security in their home country while abroad.
Opposition parties claim this creates a tax loophole that makes Indian workers cheaper to employ. They argue the change is especially damaging since UK employer National Insurance Contributions (NICs) have recently increased.
Conservative leader Kemi Badenoch claimed she had rejected a similar proposal when she was business secretary.
She said the current version contains “two-tier taxes” that would cost the UK “hundreds of millions”.
Liberal Democrat deputy leader Daisy Cooper also criticised the deal.
She said the exemption risked “undercutting British workers at a time when they’re already being hammered by Trump’s trade war and Labour’s misguided jobs tax”.
Reform UK leader Nigel Farage said: “This government doesn’t give a damn about working people.”
On social media, Brits expressed their anger at the announcement.
One wrote: “Your ‘trade deal’ exempts employers from paying National Insurance Contributions for Indian workers in the UK.
“In effect, this makes it cheaper for an employer to hire an Indian-citizen immigrant worker than any other worker in the UK. Congrats on creating a two-tier Britain.”
Another said: “If the government can exempt Indians from National Insurance, why can’t they exempt young Brits, making it easier for businesses to employ us, giving young people the opportunities they need?
“Why are Indian workers exempt for three years but not young Brits?”
A comment read: “You’ve made it so Indians don’t have to pay National Insurance in the UK while they’re still able to use the NHS and vote in our elections.
“I am so angry it’s indescribable.”
Reynolds insisted the claims were misleading.
He said the UK already had 16 international agreements that prevent double taxation on work, covering more than 50 countries. These include deals with the US, the EU and South Korea.
He said: “The Conservatives recently, well a few years ago when they were in government, signed one with Chile for five years.
“So no, British workers are not being undercut.”
“What the Conservatives are confused about, and Reform as well, is a situation where a business in India seconds someone for a short period of time to the UK, or a UK business seconds a worker to India for a short period of time, where you don’t pay in simultaneously now to both social security systems.”
The government has said Indian workers would still need to pay the NHS immigration surcharge.
They would also not be eligible for benefits from the UK’s National Insurance system.
Reynolds called the agreement a “huge economic win for the UK” and said it would bring “faster growth, higher wages, more tax revenue brilliant wins for goods and for services”.
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