1.25% rise in National Insurance will be reversed from 6 November
22nd September 2022
The 1.25 percentage rise in National Insurance will be reversed from 6 November, the Chancellor Kwasi Kwarteng has announced today (22 September).
Chancellor of the Exchequer Kwasi Kwarteng said:
Taxing our way to prosperity has never worked. To raise living standards for all, we need to be unapologetic about growing our economy.
Cutting tax is crucial to this – and whether businesses reinvest freed-up cash into new machinery, lower prices on shop floors or increased staff wages, the reversal of the Levy will help them grow, whilst also allowing the British public to keep more of what they earn.
Previously the government decided to raise National Insurance by 1.25 percentage in April 2022 to fund health and social care. The rate was due to return to 2021-22 levels in April 2023, when a separate new 1.25% Health and Social Care Levy was due to take effect. Today’s legislation reverses the rise from earlier this year and cancels next year’s introduction of the Levy.
Disclaimer - All information in this post was correct at time of writing.
