National Insurance Increase from 2022 - Then as Levy 1.25 percent from 2023

7th September 2021

The 1.25 percentage point increase means somebody on £20,000 a year would pay an extra £130, while someone on £50,000 would pay £505 more - as the chart below shows.

The same increase will still apply after the National Insurance rise is replaced by the Health and Social Care Levy in 2023.

[b[What is the new tax and who will pay it?[/b]
Employees and the self-employed will pay more tax from April 2022.

At first this will be as a 1.25 percentage point increase in National Insurance.

However, from April 2023 National Insurance will return to current rates and a new health and social care tax will be introduced. The levy will be 1.25% - making up for the change to National Insurance.

On wage slips it will appear as a "Health and Social Care Levy".

Employers will also pay more National Insurance - and the levy.

The levy - unlike National Insurance - will be paid by pensioners who work. Currently after age 65 pensioners who work do not pay National Insurance contributions.

People who earn just under £10,000 don't have to pay National Insurance or the new levy.