National Insurance contributions are set to increase this year as part of government plans to fund health and social care. Boris Johnson announced a £12 billion-a-year levy to help the struggling NHS and social care sector back in September last year.
In the 2019 Tory election manifesto, the party ruled out increasing National Insurance (NI) if returned to power - but the party has u-turned on its plans as part of its pandemic recovery effort.
A new health and social care levy, based on a 1.25 percentage-point increase in NI contributions, is set to be introduced from April.
The tax hike is designed to tackle the Covid-induced NHS backlog and reform social care. The government is introducing the National Insurance rise as part of its plans to overhaul the social care sector and fund the biggest catch-up programme in the history of the NHS in England.
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