A Treasury minister says the tax burden needed to be eased, but he faces questions about NHS funding.
Former Conservative minister James Cartlidge asked if the gap would be filled by borrowing "or some other change".
Labour shadow Treasury minister James Murray said his party welcomed the government "finally admitting they were wrong to raise national insurance on working people and businesses in the middle of a cost-of-living crisis".Before it comes into effect, the reversal also needs to be approved in the House of Lords - this is expected to happen on 17 October.
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