London Daily

Focus on the big picture.
Tuesday, Sep 22, 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
Andy Burnham Reaffirms UK Net-Zero Target With £30 Million Community Energy Fund
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
UK Consumer Confidence Falls to Three-Year Low
UK Diesel Prices Approach £2 a Litre as Global Supply Shortages Intensify
Chiltern Railways Returns to Public Ownership as UK Rail Nationalisation Advances
British Museum Faces Questions Over Peter Thiel’s Private Bayeux Tapestry Viewing
Earl Spencer Memoir Excerpts Renew Public Debate Over Diana’s Death
Liberal Democrats Gather in Brighton for Autumn Conference
Mothercare Shares Plunge as Middle East Store Closures Threaten Long-Term Solvency
Kent Police Treat Folkestone Hotel Fire as Suspicious
Caribbean Governments Advance Reparations Campaign Seeking Engagement With Britain
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
UK Competition Regulator Opens Inquiry Into McCormick-Unilever Foods Deal
Public Inquiry Into Tees, Esk and Wear Valleys Mental Health Failings Set to Begin
Nigel Farage Looks to US Immigration Enforcement Model for UK Border Policy
Chiltern Railways Moves Into Public Ownership
Security Review Raises Concerns Over Sensitive UK Police Data Stored on Microsoft Cloud
Burnham Government Warns of Difficult Autumn Budget as Fiscal Headroom Narrows
Bank of England Holds Rates at 3.75% as Inflation Rises to 3.1%
Ed Sheeran Tour Faces Backlash After Macklemore Is Removed Over Pro-Palestinian Remarks
Vandalism of Traffic Cameras Intensifies Across Parts of England
Nearly 300 Evacuated as Fire Hits Grand Burstin Hotel in Folkestone
King Charles Warns AI Executives About Risks From Uncontrolled Technology
Church of England Apologises for Role in Historical Forced Adoption Practices
UK Debate Over Online Speech Intensifies After Arrest Figures Draw Scrutiny
Oxfordshire Village Holds Symbolic Independence Vote Over Asylum Accommodation Plan
Nigel Farage and Richard Tice Sue National Crime Agency Over Alleged Banking Data Leaks
Apple Introduces Stricter Age Checks for UK Accounts
BBC Cash Reserves Fall 66% to £125 Million as Broadcaster Restructures
McLaren Announces £500 Million UK Investment and Plans 1,000 Jobs
Green Party Wins Historic Gorton and Denton By-Election as Labour Falls to Third
Burnham Government Prepares October Budget Under Growing Fiscal Pressure
UK Energy Suppliers Pull Fixed-Price Deals as Wholesale Markets Turn More Volatile
Bank of England Holds Rates at 3.75% as Middle East Energy Shock Raises Inflation Risks
Addison Lee Founder Loses £20 Million UK Tax Tribunal Case
BrewDog Creditors Face Losses on About £190 Million of Debt
Harrods Seeks to Recover Abuse Compensation Costs From Mohamed Al Fayed’s Estate
Ed Davey Targets Reform UK as Liberal Democrat Conference Opens
Great Britain Retail Sales Rise 0.5% in August
NHS England Approves Life-Extending Treatment for Incurable Breast Cancer
Proposals to Limit NHS ADHD Diagnoses Draw Criticism From Patient Groups
Resolution Foundation Warns of Housing Cost Crunch for Low-Income UK Families
BBC Cash Reserves Fall to Decade Low as Annual Deficit Reaches £121 Million
Millisecond Software Error Triggered Major UK Air Traffic Control Disruption
Twenty Women Underwent Unnecessary Mastectomies During NHS Cancer Care
Sensitive UK Police Data Found Vulnerable to Access by Foreign Actors
British Steel Faces Renewed Pressure for a Long-Term Financial Plan
MPs Urge Government to End Thames Water Restructuring Talks With U.S. Hedge Funds
Andy Burnham Warns of Difficult UK Budget Choices as Inflation Returns to 3.1%
×