London Daily

Focus on the big picture.
Monday, Jul 27, 2026

Middle-income earners ‘to be hit hardest’ by national insurance rise

Middle-income earners ‘to be hit hardest’ by national insurance rise

Workers on £30,000 to £50,000 will pay higher percentage of salary than those on £100,000, figures reveal
Earners of £100,000 a year could end up paying proportionately less in national insurance than those on middle incomes if a planned increase goes through in April, it has emerged.

Figures produced by the Tax Calculator UK website show those earning £100,000 a year will pay just 7% of their overall salary in national insurance contributions (NICs) – the same proportion of their income as someone on £20,000 a year.

The prime minister and the Treasury have come under intense pressure to scrap or at least postpone the £12bn increase in NICs – introduced to cover the shortfall in social care funding – as the cost of living crisis continues to escalate.

While the Treasury has repeatedly claimed the increase is “progressive”, figures published on Friday by the online tax calculator show that workers earning between £30,000 and £50,000 will be the hardest hit by far.

It calculates that someone earning £50,000 a year will pay £5,086 a year in NICs alone after April – a £505 increase – amounting to 10% of their gross salary.

While someone earning £100,000 a year is set to pay the highest national insurance bill – £7,008 a year (an increase of £1,130), the proportion of their pre-tax income paid in NICs will be just 7%. Those on £30,000 a year will pay 9% of their gross salary in NICs.

“The increase in national insurance will have a huge effect on workers’ earnings in 2022, especially given soaring energy bills and the fact that inflation is at its highest point in 30 years,” said a spokesperson from Tax Calculator UK.

“This data gives us a compelling insight into the fact that lower and average earners will be significantly more squeezed by the NICs hike than those at the very top.

“People earning some of the highest salaries in the country are set to pay the same percentage of their salary as a person on £20,000, despite earning five times as much.”

From April, NICs are set to be charged at 13.25% on most earnings up to £50,000 but at just 3.25% on income above that threshold.

The figures will be seized upon by Labour, which has called for a fairer, more progressive way to fund social care. The shadow chancellor, Rachel Reeves, told the BBC on Friday morning that this was the “wrong tax at the wrong time” and described it as a tax on “ordinary working people and on jobs”.

The increase in NICs was announced by the chancellor, Rishi Sunak, in last autumn’s budget and will hit wage packets on 6 April, at the same time as a four-year freeze on income tax thresholds.

The combination will leave the average household £600 a year worse off in 2022-23, the equivalent of 1.4% of their disposable income, according to the Resolution Foundation thinktank.

Business groups are also furious at rising bills for employers. On Friday the Institute of Directors joined calls from other business leaders to scrap the tax rise.

A Treasury spokesperson said: “It is not true to say that high earners are least affected by the health and social care levy. Everyone with earnings above the primary threshold will pay a flat 1.25% on their income.

“Over half the revenue from the health and social care levy will come from the wealthiest 15% of the population, while over 6 million people on lower incomes will be completely exempt.”
Newsletter

Related Articles

0:00
0:00
Close
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
Autopsy Finds No Violence in Death of Epstein-Linked Model Scout
Indian Education Minister Resigns After Cockroach Youth Protests
California Desert Data-Centre Plan Stalls as Water and Power Disputes Mount
Northern Ireland Border Security Tightened After Military-Grade Explosive Interception
British Hospitality Sector Targets Summer Visitors Through Regional Promotions
England River Access Debate Intensifies After New Data Shows Limited Public Access
Royal Navy Strengthens Maritime Vigilance Amid Rising Security Concerns
UK Education Department Expands Mental Health Support for Young People Entering Work
UK Tourism Industry Launches Summer Campaigns to Boost Domestic Travel
North England Transport Plans Advance to Support Industrial Growth
Financial Markets Watch New Government’s Economic Strategy as Investors Assess Fiscal Risks
Royal Navy Continues Monitoring Russian Naval Activity Near UK Waters
UK Care Workers May Receive Immigration Exemptions Under Proposed Visa Changes
Health Secretary Yvette Cooper Begins Emergency Talks to Address NHS Staffing Shortages
UK Banks Launch High-Interest Savings Offers to Attract Household Deposits
North Sea Oil Drilling Projects Face Delays After Offshore Equipment Accident
Cairngorms Wildfire Highlights Growing Pressure on UK Emergency Services
UK Government Borrowing Plans Put Pressure on Ten-Year Gilt Markets
Royal Navy Aircraft Carrier HMS Prince of Wales Returns After NATO Northern Flank Mission
Metropolitan Police Opens Criminal Investigation Into Reform UK Political Donations
Scottish Government Requests Military Support as Cairngorms Wildfire Forces Emergency Response
Andy Burnham Takes Office as UK Prime Minister and Unveils New Cabinet Team
War, Youth Revolt and the Global Struggle for Control
War, Power and the Rising Price of Political Decisions
High Street Sales Suffer Sharpest Summer Decline in Five Years
Wales Approves Higher Taxes on Second Homes and Long-Term Empty Properties
Environment Agency Imposes Record £150 Million Penalty on Water Companies
UK Competition Watchdog Blocks U.S. Takeover of Cambridge Chip Designer
Scotland Unveils Land Reform Bill to Expand Renewable Energy Projects
Northern Ireland Secures £500 Million Technology Investment for Belfast Cybersecurity Hub
NHS Rolls Out AI Triage System Across Major Hospitals in England
UK Strengthens North Sea Naval Cooperation With European Allies
UK Chancellor Commits £7 Billion to Accelerate Manchester-Leeds Rail Link
Bank of England Signals Interest Rate Cuts After Inflation Falls Below Target
Badenoch Rejects Grant Shapps' Bid to Return as Conservative Candidate
BAE Chief Warns Britain Has Underestimated the Risk of War
Burnham Rules Out New Scottish Independence Referendum in First Talks With Swinney
UK Government Strengthens Northern Economic Agenda Through Manchester Headquarters and Regional Partnerships
United Kingdom Opens New Furness Peninsula Coastal Route Under King Charles the Third England Coast Path
England Reduces Business Costs for Hospitality Sector Through New Relief Package
United Kingdom Allocates Seven Point Three Million Pounds for Zero-Emission Aviation Research
United Kingdom Begins Restoration Works on Portishead Railway Line After Six Decades Without Passenger Services
United States Tariff Measures Create New Trade Challenges for United Kingdom and European Union Businesses
Prime Minister Andy Burnham Meets Scottish and Welsh Leaders to Promote Regional Growth Cooperation
United Kingdom Government Announces Twenty Percent Business Rates Cut for Pubs, Clubs, and Music Venues
Prime Minister Andy Burnham Opens Manchester Government Headquarters to Shift Decision-Making Away From Westminster
United Kingdom Defence Ministry Says Armed Forces Ready After Iran Accuses London Over US Military Strikes
United Kingdom Inflation Falls to Two Point Six Percent as Prime Minister Andy Burnham Gains Economic Breathing Room
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
×