CII reaction to 2021 budget

Apprenticeships

Incentive grants for apprenticeships to increase to £3,000 and £126 for traineeships.

Keith Richards, chief membership officer of the Chartered Insurance Institute, said: “We want to assist those who may struggle to find work due to Covid-19 access a rewarding career in the insurance profession where everyone can help consumers with their money matters.

“Greater incentives for apprentices and employers to offer job placements will result in more individuals being able to access this profession, which is keen to attract fresh and diverse talent.”

Insurance Premium Tax 

Insurance Premium Tax frozen.

Keith Richards, chief membership officer of the Chartered Insurance Institute, said: “The Chartered Insurance Institute has repeatedly asked Chancellor Rishi Sunak to reform insurance premium tax (IPT). This stealth tax on responsible and vulnerable customers should have been cut.  

“While the tax may have once been seen as a necessary component of HM Treasury’s tax strategy, the rate has unreasonably risen over time from 2.5% to 12% since it was introduced in 2015, increasing the true cost of insurance and hitting hard working people the hardest.

“Covid-19 has shown how important it is to have the safety net of insurance in place. The government should consider the benefits for consumers of reducing the cost of premiums by cutting this tax, and the knock-on positive effect this will have across the country in making insurance more affordable for people to protect against the risks in life which may otherwise be catastrophic.”