London Daily

Focus on the big picture.
Monday, Jul 06, 2026

National Insurance: Opposition MPs urge rethink on April tax rise

National Insurance: Opposition MPs urge rethink on April tax rise

Opposition MPs have accused the prime minister and the chancellor of ignoring struggling families, after they confirmed taxes would rise in April.

Writing in the Sunday Times, Boris Johnson and Rishi Sunak insisted their £12bn National Insurance increase would go ahead, despite opposition.

Labour, the Lib Dems and some Tory MPs are urging a rethink, arguing workers cannot afford more tax at the moment.

Foreign Secretary Liz Truss the hike was needed due to Covid spending.

She said the Tories wanted to be able to lower taxes to boost the economy - but government support during the pandemic had to be "paid back".

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.

From April 2023, the extra tax will be collected as a new Health and Social Care Levy. Legislation to set it up was approved in Parliament in September.

The government says the money will initially help clear NHS backlogs, and then be moved into social care system over the next three years.

But critics - including some Conservatives - say the rise will place a tougher burden on the lower-paid and should be scrapped.

There is also concern about the timing of the increase, with the cost of energy soaring and rising inflation also pushing up the cost of food and other bills.

Business groups have also warned about the effect of the rise on small companies and the wider economy.


Shadow levelling up secretary Lisa Nandy called on the government to "rethink" the planned rise, adding it would see people's incomes "squeezed even more".

She told BBC One's Sunday Morning programme: "You can't possibly hit people with more taxes at the moment. It's just simply not possible for a lot of people to survive."

"The stories that I'm hearing from people across the country about the sacrifices they're going to have to make are enormous."

She added Labour would be "doing everything that we can over the next few weeks to try and appeal to Tory MPs' consciences".

'Number one priority'


The Liberal Democrats have described the National Insurance rise as unfair.

Party leader Sir Ed Davey called for action on energy prices, including more support for poorer families paid for through a "Robin Hood" tax on fuel companies.

He accused the prime minister of being "focused on saving his own skin" over the No 10 lockdown parties scandal, rather than "taking action".

Robert Halfon, one of the Tory MPs calling on the government not to go ahead with the rise, said ministers should make the cost of living their "number one priority".

Speaking on BBC Breakfast, he suggested money for the NHS could instead be raised from the taxes on capital gains - profits made from selling certain assets - or by raising taxes on oil companies.

Senior backbench Tories Robert Jenrick and Mel Stride have also called for the increase to be delayed. Former cabinet minister Mr Jenrick saying that 2022 would already be "exceptionally hard" for families.


Defending the rise in the Sunday Times, Mr Johnson and Mr Sunak said it was "progressive" because higher earners pay more.

They described themselves as "tax-cutting Conservatives" and "Thatcherites, in the sense that we believe in sound money".

But they added: "There is no magic money tree."

The article 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.

'Very difficult situation'


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

Foreign Secretary Liz Truss, who is also seen as a possible leadership candidate, defended the tax rises but accepted they are "never popular".

Also speaking to the Sunday Morning programme, she said the country was in a "very difficult situation" because of money spent supporting the economy during Covid.

"As soon as possible, we want to be in a position to lower our tax rates, we want to drive economic growth, because ultimately that is what will make our country successful," she added.

"But we do face a short-term issue, which is that we have spent significant amounts of money dealing with the Covid crisis that does need to be paid back."


What the rise in National Insurance could mean for you


Newsletter

Related Articles

0:00
0:00
Close
NHS Maternity Reform Expands Central Oversight After Critical National Review
Dover Border Warnings Highlight Post-Brexit Pressure on Cross-Channel Trade
Private Nuclear Consortium Advances £35 Billion Small Reactor Strategy in UK
UK Labour Leadership Signals Shift Toward Reindustrialisation and Regional Power
House of Lords Debates Rail Nationalisation Bill to Create Great British Railways
Scottish Affairs Committee Expands Inquiry Into SNP Financial Conduct
Evri Launches £1.2 Million Defamation Case Against BBC Over Panorama Investigation
Port of Dover Warns of Border Delays as EU Entry-Exit System Looms
Nigel Farage Referred to Standards Watchdog Over Alleged Undeclared Benefits
UK Government Faces Scrutiny Over Claimed AI Datacentre Investment After FOI Findings
UK and India Finalise Trade Agreement Rules Ahead of Mid-July Implementation
UK Government Establishes National Maternity Commissioner After Major Review of NHS Care Failures
Private Consortium Plans £35 Billion UK Nuclear Programme Targeting Small Modular Reactor Rollout
Andy Burnham Sets Out Ten-Year Reindustrialisation and Devolution Plan as Leadership Transition to UK Premiership Advances
Morocco and France Advance as 2026 FIFA World Cup Enters Quarterfinals.
Historic 2026 Tour de France Opens in Barcelona With Revamped Team Time Trial.
Global Mergers and Acquisitions Approach $4 Trillion Defying Geopolitical Tumult.
Negotiators Advance 20-Point Framework for Gaza Ceasefire and Demilitarization.
OECD Warns Middle East Conflict Will Depress Global Economic Growth.
Ukrainian Drones Strike Major Oil Terminal in St. Petersburg.
World Meteorological Organization Issues Urgent Alert Over Rapidly Intensifying El Niño.
United States Commemorates 250th Anniversary With Diplomatic Summits and Global Flotilla.
Iran Begins Days-Long Funeral for Supreme Leader Khamenei Amid Strait of Hormuz Standoff.
Technology giant reports surging carbon emissions driven by artificial intelligence infrastructure demands.
Artificial intelligence adoption accelerates workforce reductions across the technology and financial sectors.
Global technology and financial conglomerates collaborate to launch a new stablecoin standard.
United States regulators lift export restrictions on a major frontier artificial intelligence model.
Royal Society Exhibition Highlights Growing Focus on Public Trust in Science
Energy Costs and Supply Chain Risks Continue to Shape UK Business Strategy
Rapid Rise in Artificial Intelligence Adoption Reshapes UK Corporate Operations, ONS Says
UK Businesses Turn Defensive as Economic Outlook Weakens, Institute of Directors Data Shows
UK Government Faces Criticism Over Late Extension of Pub Hours for England Match
Inquest Continues Into Death of Noah Donohoe as Jury Deliberates Findings
Calls for Stronger Wildlife Attraction Safety Rules After Crocodile Enclosure Injury
City Fire Under Control After Major Blaze Sends Smoke Across Urban Area
Police Investigation Continues After Officer Killed During Road Closure Duties
Blackpool Hotel Fined £120,000 After Electric Shock Incident Involving Child
Whistleblowers Allege Delays in UK Special Educational Needs Support Services
Calls Grow for Improved Support for UK Armed Forces Personnel Facing Health Conditions
Rising UK Energy Price Cap Increase Prompts Wider Concerns Over Household Pressures
UK Businesses Remain Concerned Over Global Conflict Risks to Supply Chains, ONS Finds
Office for National Statistics Reports Rising Adoption of Artificial Intelligence Across UK Businesses
Institute of Directors Reports Deepening Pessimism in UK Business Confidence Index
England Prepare for World Cup Round of 16 Match Against Mexico in Mexico City
Royal Society Summer Science Exhibition Concludes in London After Week-Long Showcase of Research
Silverstone Hosts British Grand Prix as Lando Norris and Lewis Hamilton Lead Home Crowd Expectations
Cornwall Van Dwellers Face Homelessness Risk as Council Tightens Enforcement
Police Investigate Stabbing of Iranian Journalist in London
Rare Copy of US Declaration of Independence Discovered in UK Archive
Department for Education Data Shows Persistent Literacy Gap Among Disadvantaged White Pupils
×