The Budget confirmed that the 'Health and Social Care' levy will be introduced from April 2022, resulting in a 1.25% temporary increase to both the main and additional rates of Class 1, Class 1A, Class 1B and Class 4 national insurance contributions.
| Class |
Threshold |
Current Rate |
New rate |
| Class 1 (primary) |
Main rate |
12% |
13.25% |
| |
Additional rate |
2% |
3.25% |
| Class 1 (secondary) |
|
13.8% |
15.05% |
| Class 1A |
|
13.8% |
15.05% |
| |
|
13.8% |
15.05% |
| Class 4 |
Main rate |
9% |
10.25% |
| |
Additional rate |
2% |
3.25% |
From April 2023 onwards the rates will be reduced back to the 2021/22 levels and a new 1.25% Health and Social Care levy will be introduced.
Individuals above state pension age, and therefore not currently paying national insurance contributions, will not be affected by the temporary increase in 2022/23, however they will be subject to the new levy introduced from April 2023 onwards.