London Daily

Focus on the big picture.
Thursday, Mar 19, 2026

National Insurance: No 10 insists planned rise will go ahead

National Insurance: No 10 insists planned rise will go ahead

Downing Street has insisted the planned rise in National Insurance will go ahead after a number of Tory MPs called for it to be paused or scrapped.

The increase is due to come into effect in April to help fund the NHS and social care.

Some Conservatives said the measure should be put on hold or reconsidered because of rising household bills.

But Boris Johnson's spokesman has said the PM and the chancellor remain "fully committed" to the move.

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 which 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 at a time 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.


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

He said the government should look at raising the funds through other means, such as with a one-off tax on firms that made big profits during the pandemic or by taxing other forms of income.

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

There have been reports by some newspapers that Mr Johnson was considering a U-turn on the move.

But when asked on Friday if the rise was happening "no ifs, no buts", the prime minister's official spokesman said "yeah".

The spokesman added: "The prime minister and chancellor are fully committed to introducing the health and social care levy in April.

"We've spoken before about why we are doing that - in order to give the NHS the funds it needs to tackle the backlog that has built up, as well as tackling the long-term issue of social care."

Earlier Technology Minister Chris Philp said the tax rise would go ahead, telling Sky News: "It was approved by the whole cabinet, it was passed by Parliament with a significant majority, and the money is needed to fund the NHS, which I think is something that is a national priority."

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.

Speaking to broadcasters on a visit to Glasgow, he added: "And at that very moment, Boris Johnson and his government want to impose a tax hike on people in April."

Mike Padgham, chairman of the Independent Care Group, told BBC 5 Live he supported the idea of extra funding for social care from general taxation rather than from a rise in NI.

But he added: "What is clear is that we have had decades of promises to fund social care properly but it has never come. So I am very worried that if it is scrapped then we will never get the funding."

The Institute of Directors business lobby group urged Chancellor Rishi Sunak to scrap the move, saying it would reduce take-home pay during a cost-of-living crisis and that businesses may hire fewer staff or increase prices for customers to cover the cost.

The government says the changes 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.

Meanwhile, the prime minister continues to wait for senior civil servant Sue Gray's report on parties held at Downing Street during the pandemic.

On Friday, the Metropolitan Police said it had asked Ms Gray to make "minimal reference" in her report to events the force is looking at for its investigation into Covid rule-breaking.


What the rise in National Insurance could mean for you

Defence minister James Heappey says the government is "in listening mode"


Newsletter

Related Articles

0:00
0:00
Close
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
UK VAT Decision Opens Path for Potential Refunds to U.S. Biopharma Firms
UK and Canada Advance ‘Middle Power’ Strategy to Shape Global Influence Beyond Superpowers
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Holds Back on Hormuz Escort Mission While Continuing Talks with Allies
TrumpRx Pricing Platform Faces Scrutiny as Some Medicines Remain Costlier Than in the UK
UK, Netherlands and Finland Explore Joint Defence Investment Bank to Boost Military Capability
Deadly Meningitis Outbreak in Kent Raises Alarm as Cases Surge and Emergency Response Expands
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
UK Prime Minister Urges Continued Focus on Ukraine Amid Escalating Iran Conflict
UK Introduces New Safeguards to Shield Lenders from Bank Run Risks
UK Promotional Products Market Surpasses £1.3 Billion as Demand Strengthens in 2025
Reeves Pushes for Deeper UK-EU Economic Ties to Revive Growth
UK Security Adviser Saw No Imminent Iranian Nuclear Threat Days Before War Erupted
France Signals Warm Welcome for UK Return to EU Single Market Amid Renewed Cooperation Talks
UK Defence Official Criticises Boeing Over Delays to E-7 Wedgetail Programme
UK Urged to Secure Quantum Talent as Minister Warns Against Repeating AI Setbacks
UK Mayors Set to Gain New Spending Powers Under Reeves’ Fiscal Devolution Plan
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
UK Set to Introduce Steel Tariffs of Up to 50 Percent in New Industrial Strategy
European Governments Decline Trump’s Call to Send Warships to Reopen Strait of Hormuz
Fears Over Iran Conflict Weigh on UK Consumer Confidence
Starmer Says UK Working With Allies on Hormuz Shipping Plan After Trump Raises Pressure
Iran War and Energy Shock Shake Britain’s Economy and Political Debate
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
King Charles and Queen Camilla Share Personal Tributes to Their Mothers on UK Mother’s Day
Prince William Honors Princess Diana with Mother’s Day Tribute
UK Economy Stalls in January as Households Cut Back on Eating Out
AI-Generated Singer Becomes Viral Voice for Iranians With New Anthem
London Private Club Founder Plans Exclusive Palm Beach Venue Near Trump’s Mar-a-Lago
Ed Davey Urges Britain to Build Fully Independent Nuclear Missile Capability
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
US Treasury Links British Polo Patrons to Alleged Venezuelan Oil Proceeds Laundering Scheme
Hundreds Gather in London Despite Ban on Annual Pro-Palestinian March
Two Dead and Multiple Students Seriously Ill After Invasive Meningitis Outbreak at UK University
UK Considers Deploying Ships and Mine-Hunting Drones to Reopen Strait of Hormuz
Starmer and Trump Discuss Urgent Need to Reopen Strait of Hormuz Amid Escalating Iran Conflict
Prince Harry and Meghan Markle’s Planned Australia Visit Draws Mixed Reaction From Local Communities
Trump Calls on France and UK to Help Safeguard Strait of Hormuz Shipping Route
Boris Johnson Labels Bitcoin a ‘Ponzi Scheme’, Sparking Debate in Crypto World
×