National Insurance rises

National insurance will rise by 1.25% from April 2022 for a year, to pay for the NHS and social care. Boris Johnson and chancellor Rishi Sunak said that the rise “must go ahead” and insisted it was the “right plan”, despite calls for it to be scrapped as households face increased food and energy bills. In an article in the Sunday Times, they said the increase would help clear the NHS backlog. But what does this mean in practice? An employee earning £20,000 a year will pay an extra £89 and someone on £50,000 will pay an additional £464. From April those earning under £9,880 a year will not have to pay NICs and will not have to pay the new levy. Shadow levelling up secretary Lisa Nandy told the BBC: “You can’t possibly hit people with more taxes at the moment. It’s just simply not possible for a lot of people to survive.” Conservative MP Robert Halfon has opposed the rise and fellow Tories Robert Jenrick and Mel Stride have called for the increase to be delayed. Mr Jenrick said that 2022 would already be “exceptionally hard” for families. Critics argue the rise will have a greater impact on the lower paid, while business leaders warn firms could offset the rise by hiking up prices.

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