London Daily

Focus on the big picture.
Thursday, Mar 26, 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
Jaguar Land Rover Halts Production at UK Plant Amid Supplier Disruption
UK Police Reverse Position, Confirm Arrests Will Resume for Palestine Action Protests
UK Small Businesses Face Europe’s Steepest Cost Pressures, New Survey Reveals
US Envoy Urges UK to Proceed with King’s Visit Amid Diplomatic Sensitivities
FTSE 100 Drops Over One Percent as Middle East Tensions Weigh on Markets
UK CO2 Plant Set to Reopen as Authorities Move to Safeguard Supplies Amid Middle East Tensions
Trump Urges Stronger Defence Investment as He Questions Allied Naval Capabilities
New COVID Variant Detected in UK Raises Concerns Over Vaccine Effectiveness
FTSE Russell Moves to Standardise Free-Float Rules for UK and International Listings
HBO Max Launches in UK and Ireland, Marking Major Step in Global Streaming Expansion
UK Signals Readiness to Seize Russian ‘Shadow Fleet’ Vessels in Escalation of Sanctions Enforcement
Escalating Middle East Conflict Seen as Major Threat to UK Economic Stability
Early Challenges Mark Prince Harry and Meghan’s Australia Visit
UK Government Rejects Cover-Up Claims After Theft of Former PM Aide’s Phone
Cyprus Opens Strategic Talks with UK Over Sovereign Base Areas
UK Faces Risk of Sharp Inflation Surge Despite Stable Pre-Crisis Figures
UK Police Arrest Two Over Suspected Antisemitic Arson as Iran Link Investigated
UK Inflation Holds at Three Percent Ahead of Oil Price Shock from Iran Conflict
UK Fuel Prices Face Upward Pressure as Global Oil Trends Raise Cost Outlook
Girlguiding UK Sets September Deadline for Membership Policy Change Affecting Trans Participants
Germany and UK Accelerate Wind Power Expansion to Strengthen Energy Security
UK Moves to Ban Cryptocurrency Donations to Political Parties Over Foreign Influence Concerns
UK and Turkey Finalise Major Air Defence Agreement Worth Billions
Apple Introduces Mandatory Age Verification for iPhone Users in the UK
Diverging Views Emerge Over Meghan Markle’s Planned Australia Appearance
Trump Signals Frustration with UK Leadership Amid Diverging Approaches to Iran Conflict
UK Government Takes Control of Hunterston B as Landmark Nuclear Decommissioning Begins
UK Public Inflation Expectations Jump Sharply in March, Raising Pressure on Bank of England
UK Ministers Warn Expanded North Sea Drilling Would Deepen Exposure to Global Energy Volatility
Delayed UK Defence Investment Plan Leaves Suppliers Under Severe Financial Strain
Can Iran Strike the UK? Assessing the Real Military Threat as Conflict Escalates
Sanctioned Iranian Banker Linked to Luxury Marbella Villa Through UK Corporate Structure
Casey Bloys Navigates HBO Max UK Launch, Paramount Integration and Industry Buzz Over Netflix Meeting
Iran Conflict Sparks Sharp Turbulence in UK Mortgage Market, Reaching Pandemic-Era Disruption Levels
Major Donor Urges University of Kentucky to Reconsider Mitch Barnhart’s Post-Retirement Role
United Kingdom Moves to Lead International Effort to Reopen Strait of Hormuz
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
Senior UK Advocate Criticises Barnhart Retirement Appointment, Calls for Reconsideration
UK Finds No Evidence of Direct Iranian Threat to Britain, Says Prime Minister Starmer
Assessing Iran’s Strike Capability and the UK’s Readiness Amid Rising Tensions
NATO Unable to Confirm Iran’s Role in Strike on UK-US Base as Tehran Denies Involvement
University of Kentucky’s Youling Xiong Receives SEC Faculty Achievement Award for 2026
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
Duchess of Sussex Secures ‘As Ever’ Trademark Rights in Australia Ahead of High-Profile Visit
UK Reaffirms Security as Officials Reject Claims of Immediate Iranian Missile Threat
Rising Middle East Tensions Spark ‘Trumpflation’ Debate Over Impact on UK Households
×