National Insurance contributions

In September 2021, the government published its proposals for new investment in health and social care in England. To fund the investment the government introduced a UK-wide 1.25% Health and Social Care Levy based on the National Insurance contributions (NICs) system but ringfenced for health and social care. The Health and Social Care Levy Act provided for a temporary 1.25% increase to both the main and additional rates of Class 1, Class 1A, Class 1B and Class 4 NICs for 2022/23. From April 2023 onwards, the NIC rates were intended to revert to 2021/22 levels and be replaced by a new 1.25% Health and Social Care Levy.