New health and social care levy

The Prime Minister has announced that an increase in national insurance contributions will come into effect in April 2022.  National insurance contributions from both employer and employee will increase by 1.25% and tax on share dividends will be increased by 1.25% to address the funding crisis in health and social care.  The new ‘health and social care levy’ will be separately identified on payslips from April 2023 and will be legally ringfenced for the NHS.  Working pensioners who do not currently pay national insurance will have to pay the new 1.25% levy from April 2023.