National Insurance Levy Has Ended But What Is Next

6th November 2022

The National Insurance rates between 6 April and 5 November 2022 include a 1.25% levy to directly support the NHS, bringing the rates to 13.25% and 3.25%.

Following the Growth Plan statement at the end of September 2022, from 6 November 2022 the NIC rates drop down again.

The proposed Health and Social Care Levy, which should have taken effect from 6 April 2023, will no longer come into force.

While scrapping the levy is good news we all now await the statement on 17 November by the UK government as to where the money to fill an estimated £40 to £50 billion gap in the finances will come from. Warning signs suggest other taxes and cuts to budgets all around.

The Scottish Government has already announced huge cuts.
Scotland's finance secretary has announced a further £615m of cuts to healthcare, education and the justice system, blaming the "calamity" of Liz Truss's mini-budget. John Swinney said he expected further deep spending cuts in the UK chancellor's autumn statement, with a consequent reduction in Scottish funding.
The total cuts from the Scottish Government now total £1.2billion.
Health services face the biggest share of the cuts.

The reversal of April's rise in National Insurance takes effect across the UK from today
Added to July’s increase in National Insurance thresholds, almost 30 million people will be £500 better off on average next year
Most employees will start to receive this tax cut directly through payroll between November and February
The tax cut was announced by the government on 22 September, as part of the reversal of the Health and Social Care Levy.

Working people across the UK will begin receiving the tax cut in their payslips this month, with all expected to have started receiving it by February.

The move to reverse April National Insurance increase follows the rise in National Insurance thresholds in July. As a result of both measures, working people will be £500 better off, on average, next year.

Funding for health and social care services will be maintained at the same level as if the levy were in place.

It takes effect in all parts of the UK and means working people will keep more of the money they earn.

BBC
National Insurance Will tax cut save me money