There are no plans to reverse the decision to abolish the Class 2 category of National Insurance payments.

In his Budget this year, Treasury Minister Alfred Cannan announced plans to scrap the fixed rate Class 2 contribution for self-employed workers, while increasing Class 4, from 2018.

However, since then, UK Chancellor Philip Hammond first announced plans to increase self-employed NI contributions in the UK, before being forced into a humiliating U-turn after Tories threatened to revolt.

Mr Cannan said his decision was made independently from anything taking place in the UK.

’The abolition of Class 2 contributions, which are generally made through monthly payments, will greatly simplify the dealings the self-employed have with the income tax division,’ he said. ’They will only have to pay one amount of National Insurance each year through their Class 4 assessment, at the same time as their income tax assessment.’

Class 2 is a fixed amount and Class 4 is based on the self-employed workers’ profits. He added: ’This is a much better approach.

’Treasury remains fully committed to ensuring that the scope of National Insurance contributions and entitlement to associated contributory benefits is fair and consistent for all, whether you are employed or self-employed.’

This was already reflected, he told the House of Keys, in the plans for the single tier state retirement pension, from April 2019, and in the fact the Treasury was giving ’active consideration’ to the extent of contribution-based jobseekers’ allowance that the self-employed should be entitled to receive.