London Daily

Focus on the big picture.
Friday, Nov 06, 2026

National Insurance: Boris Johnson and Rishi Sunak confirm rise from April

National Insurance: Boris Johnson and Rishi Sunak confirm rise from April

A planned £12bn rise in National Insurance from April is "the right plan" and "must go ahead", Boris Johnson and Rishi Sunak have said.

In an article in the Sunday Times, the PM and chancellor said the rise - which applies to employees and employers - will help clear the NHS backlog.

Despite opposition, including from some Tory MPs, they say it is "progressive" because higher earners pay more.

With inflation rising sharply, there had been calls to scrap the tax rise.

Under the plans, employees, employers and the self-employed will all pay 1.25p more in the pound for National Insurance from April 2022 for a year.

After that, the extra tax will be collected as a new Health and Social Care Levy.

The changes to National Insurance will see an employee on £20,000 a year pay an extra £89 in tax. Someone on £50,000 will pay £464 more.

From April, people earning under £9,880 a year, or £823 a month, will not have to pay National Insurance and will not have to pay the new levy.

Critics have said the increase will have a higher impact on the lower-paid and could contribute to inflation when household budgets are under pressure from rising energy prices and food bills.

And business leaders have warned that firms could offset the tax rise by raising prices.

Inflation - the rate at which prices are rising - is already at a 30-year high, reaching 5.4% this month.


Robert Halfon, chairman of the Commons Education Select Committee, was among the Conservative MPs to call for the government to reconsider the move last week.

Senior backbench Tory MPs Robert Jenrick and Mel Stride have called for the increase to be delayed, with Mr Jenrick saying that 2022 would already be "exceptionally hard" for families.

Labour leader Sir Keir Starmer said the increase was the "wrong thing to do", coming at a time when inflation is at its highest level in 30 years.

The government has said the changes, announced at last year's Budget, are expected to raise £12bn a year, which will go initially towards easing pressure on the NHS.

A proportion will then be moved into social care system over the next three years as the Covid backlog subsides.


Despite confirming the tax rise, Mr Johnson and Mr Sunak described themselves in the Sunday Times as "tax-cutting Conservatives" and "Thatcherites".

They added: "We believe passionately that people are the best judges of how to spend their own money.

"We want to get through this Covid-driven phase, and get on with our agenda, of taking advantage of our new post-Brexit freedoms to turn the UK into the enterprise centre of Europe and the world.

"We want lighter, better, simpler regulation, especially in those new technologies in which the UK excels. We are also Thatcherites, in the sense that we believe in sound money.

"There is no magic money tree."

It will be seen as a show of unity between the pair, after widespread criticism of Mr Johnson over claims of parties in Downing Street during lockdown.

Mr Sunak is a leading candidate to replace Mr Johnson if a leadership contest is triggered before the next election.

Meanwhile, the government confirmed on Friday that the earnings threshold at which graduates in England start repaying student loans would be frozen in April.

The freeze, which would see a graduate earning £30,000 repay £113 more a year than expected, has been described as a "stealth" tax rise for those affected.


What the rise in National Insurance could mean for you


Newsletter

Related Articles

0:00
0:00
Close
High Court Rules in Favor of Comprehensive Transparency Review Regarding Government Artificial Intelligence Procurement Contracts
Home Office Expands Digital Border Security and Electronic Travel Authorization Systems Across International Arrivals
Scottish Government Confirms Accelerated Investment in Offshore Renewable Energy Infrastructure Across North Sea Corridors
Department for Environment Food and Rural Affairs Implements Stricter Water Company Oversight and Environmental Penalties
National Health Service England Unveils Emergency Winter Resilience Package to Tackle Acute Accident and Emergency Backlogs
Office for National Statistics Reports Gross Domestic Product Growth Stagnated at Zero Point One Percent in Third Quarter
Chancellor of the Exchequer Outlines Comprehensive Fiscal Strategy to Stabilize National Borrowing and Public Spending
Bank of England Maintains Base Interest Rate at Five Percent Amid Persistent Service Sector Inflation Pressures
Office for National Statistics Reports Stable Consumer Confidence and Modest Retail Growth Heading into Winter
Welsh Government Launches Strategic Regional Transport Initiative to Modernize Rail Links Across South Wales
Home Office Expands Digital Border Security Controls and Electronic Travel Authorisations for Inbound Visitors
Scottish Government Announces Emergency Housing Investment Package to Tackle Urban Homelessness Crises
Northern Ireland Executive Reaches Bipartisan Consensus on Public Sector Pay Reform and Budget Allocations
Automotive Manufacturing Sector in the West Midlands Welcomes New Electric Vehicle Supply Chain Investments
Department for Energy Security and Net Zero Approves Offshore Wind Expansion in the North Sea
HM Treasury Finalizes Regulatory Framework for Stablecoins and Digital Asset Markets in London
National Health Service Unveils Comprehensive Digital Integration Strategy to Slash Hospital Waiting Lists
Bank of England Leaves Interest Rates Unchanged Amid Persistent Wage Growth and Inflationary Pressures
United Kingdom and Caribbean Nations Agree to Establish Formal Diplomatic Dialogue Following Reparations Discussions
Cambridge University Appoints Senior Barrister to Lead Independent Review into Death of Academic Jason Arday
Historic Hastings Castle and Kent Dickens Chalet Added to National Heritage at Risk Register Amid Deterioration Concerns
Incoming British Ambassador to Japan Calls for Deepened Bilateral Cooperation on Artificial Intelligence and Semiconductors
Milburn Review Urges Employment Revolution to Unlock Workforce Opportunities for Young Disabled Britons
British Healthcare Worker Evacuated from Democratic Republic of Congo to United Kingdom Following Ebola Exposure
United Nations Refugee Agency Criticises Government Proposal for Thirty-Year Earned Settlement Pathways for Asylum Seekers
Parliamentary Inquiry Warns United Kingdom Remains Exposed to Chinese Critical Mineral Dependencies
Bank of England Prepares Interest Rate Decision as Inflation Pressures Prompt Expectation of Four Percent Benchmark
Department for Business and Trade Overhauls Protection Standards for Digital Animation and Moving Image Files
Intellectual Property Office Introduces Thirty-Month Grace Period for International Product Launches
Intellectual Property Office Targets Anti-Competitive Filings With New Powers to Verify Novelty Before Registration
Creative Industries Minister Ian Murray Praises Regulatory Reforms to Safeguard Small Businesses and Micro-Enterprises
Government Unveils Major Design Framework Overhaul to Protect British Creators and Boost Economy
Global Asset Management Reports Surge in British Dividend Payouts Driven by Strong Financial and Mining Sectors
HM Treasury Confirms Strongest Group of Seven Growth Figures as Fiscal Consolidation Plans Progress
Department for Energy Security and Net Zero Approves Construction of New North Sea Offshore Wind Hub
Northern Ireland Executive Finalizes Public Sector Pay Agreements Following Months of Inter-Agency Negotiations
Welsh First Minister Eluned Morgan Secures Cross-Party Support for Regional Clean Energy Infrastructure Bill
Competition and Markets Authority Launches Formal Investigation Into Dominant Artificial Intelligence Cloud Partnerships
United Kingdom Foreign Secretary David Lammy Concludes High-Level Diplomatic Mission to Washington and Ottawa
Scottish Government Announces Emergency Housing Investment Package to Address Escalating Urban Homelessness
Chancellor Rachel Reeves Finalizes Corporate Tax Adjustments Ahead of Upcoming Business Investment Summit
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected A&E Overcrowding
Bank of England Monetary Policy Committee Votes to Hold Base Interest Rate Steady at Four Point Seven5 Per Cent
UK Gross Domestic Product Expands by Zero Point Four Per Cent in Third Quarter Driven by Resilient Services Growth
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
×