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National Insurance rise hits UK today

National Insurance rise hits UK
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Millions of workers and firms are hit by national insurance hikes from today (6), increasing financial pressures on households and businesses.

The move implies that millions of Britons will begin paying higher National Insurance contributions at a time when they are already juggling rising costs.


The “Health and Social Care Levy” is expected to raise around £12bn per year, to tackle the backlog of cases at the NHS due to the pandemic, and also reform routine services.

Today’s changes mean those earning above £9,880 will now be liable for 13.25 percent NI contributions, up from 12 percent. Earnings above £50,270 will be charged at a rate of 3.25 percent, up from 2 percent. Employers also pay National Insurance - and that rate is going up by 1.25 percentage points too.

Business groups, unions and some Conservative MPs had all pushed the government to delay the increase, given the financial pressures on workers and companies.

An initial assessment by HM Revenue and Customs after the policy was announced calculated that 29 million workers would be worse off as a result of the measure.

However, further changes announced in last month's spring statement will reduce tax bills as those will see the threshold for starting to pay NI rise from £9,880 to £12,570 from July.

Meanwhile, prime minister Boris Johnson has defended the decision to hike up national insurance for millions of workers, arguing that the rise is "necessary, fair and responsible next step, providing our health and care system with the long term funding it needs as we recover from the pandemic".

The government argues the levy is progressive, with the highest 15 per cent of earners paying more than half the revenues.

The government says that this policy will mean £39 billion being invested in health and social care over the next three years.