Employees in the UK pay National Insurance contributions on their earnings with employers collecting and forwarding said contributions to HMRC. Through National Insurance, workers earn the right to certain benefits, including the new state pension. According to The Telegraph, the Government is preparing to announce a tax hike on National Insurance to pay for social care costs and assist the NHS following the COVID-19 pandemic.
Reports suggest that Prime Minister Boris Johnson is looking to raise National Insurance by one percent next April to help fund the country’s health service.
However, Rishi Sunak and the Treasury are allegedly lobbying for a higher 1.25 percent increase on contributions.
This has proven to be controversial among the wider Conservative Party as Mr Johnson promised not to raise National Insurance as part of his winning manifesto during the 2019 Election.
Some experts believe the Prime Minister will force pensioners to pay National Insurance as well to pay for the NHS, which would cause further controversy.
In March 2021, the Government raised the National…
