Great Britain: the government maintains the increase in social insurance contributions scheduled for April

In a Sunday Times article from 30 January, UK Prime Minister Boris Johnson and his finance minister Chancellor Rishi Sunak confirmed their intention to raise national insurance payments in April by 1.25 percentage points (12% to 13.25%), for employees, employers and the self-employed. The executive’s aim is to raise £12 billion (€14.37 billion) in 2022, which will be used exclusively to fund the NHS and social care. “We must clear the Covid backlogs, with our plan for health and social care – and now is the time to stick to that plan. We must go ahead with the health and care levy. It is the right plan,” the pair insisted. Many MPs, including Conservatives strongly oppose the decision. Concerned about families struggling during the pandemic, they have called for the measure to be postponed. The extra annual cost for the average employee has been estimated at £200 (€239). The employers’ confederation CBI, recalled it had never been in favour of the increase, which it said would “inevitably put additional pressure” on companies’ budgets and could prompt some to raise their prices. It should be noted that from April 2023, national insurance contributions will revert to their previous levels, however, a Health and Social Care Levy of an equivalent amount will be created in order to continue to finance the health care system.