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Mar 1, 2022

Wheelers Words: Health and Social Care – National Insurance Contribution

From 6 April 2022, National Insurance contributions will increase by 1.25 percentage points, helping fund the NHS and health and social care.

Employers are being encouraged inform employees, via a message on employees payslips between 6 April 2022 and 5 April 2023, explaining the increase National Insurance contribution, the message should read “1.25% uplift in NICs funds NHS, health & social care.”

HMRC have also been in contact with payroll software providers to request that they include this message in their software and wider support models, but some employers will need to make this change themselves.

The reason for this increase is 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 introduced from April 2022 when National Insurance contributions for employees under State Pension age, self-employed people and employers will increase by 1.25 percentage points and be added to the existing funding for the NHS.

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 to 2022 levels and receipts from the Levy will go directly for spending on health and social care.

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