Health and Social Care ― National Insurance Contribution increase

On 7 September 2021 the government announced a new 1.25% Health and Social Care Levy to fund investment in the NHS, health and social care.

The Levy is effectively introduced from April 2022 when the rate of National Insurance contributions for working age employees,

self-employed people and employers will increase by 1.25 percentage point and be added to the existing NHS allocation.

From April 2023, the Levy will be formally separated from National Insurance contributions and will also apply to the earnings of individuals working above State Pension age.

National Insurance contribution rates will then return to 2021-22 levels and receipts from the Levy will go directly for spending on health and social care.

Employers should ensure that there is a message on all payslips between 6 April 2022 and 5 April 2023, which should read; “1.25% uplift in NICs funds NHS, health & social care.”. This explains the employees' increased National Insurance contributions.