Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the Health and Social Care Levy rise in National Insurance is an increase of 1.25 percentage points or 1.25 per cent; and what the equivalent percentage rise is in the amount take from a standard taxpayer.

The Health and Social Care Levy is an increase of 1.25 percentage points in the main and additional rates of Class 1, 1a, 1b and 4 in 2022-23. From April 2023 onwards, the rates will reduce back to previous levels and there will be a separate 1.25 per cent charge on all earnings above the Primary Threshold subject to the same Classes of National Insurance Contributions (NICs).

In the tax year 2022-23, a taxpayer earning the median income would be subject to 13.25 per cent in Class 1 NICs on earnings above the Primary Threshold. From April 2023 onwards they would be subject to 12 per cent in Class 1 NICs, plus 1.25 per cent on their earnings above the Primary Threshold.