The Government has announced an increase in National Insurance contributions to help fund social care in England, and to help the NHS recover following the pandemic.
This has been met by some backlash however, claiming this will be unfair on younger people and those on a lower wage. Those earning £20,000 per year will pay an extra £130 whereas someone on £50,000 will pay an additional £505.
In April 2023, the National Insurance rate will return to it’s current rate and the extra tax will be collected as a new Health and Social Care Levy.
According to the Government, these changes will raise an additional £12bn each year, which will initially be used to ease pressure on the NHS. Over the next three years, a proportion will be moved into the Social Care system.
The aim is to ensure that people in England pay no more than £86,000 in care costs from October 2023 (excluding accommodation and food).
To read more about the increase in NI contributions and how they will be used, please click here .