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Increase in National Insurance Rates

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In April 2022, the rate at which employees, employers and the self-employed pay National Insurance increased by 1.25%, helping to fund the NHS and the government’s social care system. The amount of National Insurance you pay (as an employee) depends on the level of employment income. For more information, visit our article explaining National Insurance.
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What's Changing?

As of 6 April 2022, the rates of National Insurance increased by 1.25%. However, from 6 April 2023, National Insurance will return to the 2021/22 rates, and the tax will be collected as a separate Health and Social Care Levy. This will appear separately on your payslip so you can see your exact contributions.

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Where Is the Money Going?

The increase has been introduced to fund two things:

NHS Backlog – COVID has put a strain on the NHS, creating an ever-increasing waiting list. The government expects the changes to raise £12bn a year, which will initially help ease this pressure.

Social Care – Over the next 3 years, a proportion will be moved over to social care. This supports the elderly, those with disabilities and those with high care needs.

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National Insurance Explained

As an employee, you make Class 1 (primary) NICs. The amount you have to pay is based on the level of your employment income.  

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