Personal Finance

National Insurance rise explained – are you set to pay more from April 2022?

Think tank the Resolution Foundation says a typical 25-year-old today will pay an extra £12,600 over their working lives from the increase in employee National Insurance alone, compared to nothing for a pensioner relying on pension income.

Millions of UK workers will be affected as the new Build Back Better Government plan will see the new Health and Social Care levy paid on all earned income, including a charge for those working beyond state pension age from April 2023.

Such developments come in an effort by the Government to raise £12billion a year, or £36billion over the next three years, in order to fund social costs.

Devolved Governments in Scotland, Wales and Northern Ireland will receive an extra £2.2billion per year as part of the levy.


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