References

HM Revenue and Customs. Health and Social Care Levy. Policy paper. 2021. https://tinyurl.com/474vxz79 (accessed 17 May 2022)

Boris Johnson's first speech as Prime Minister. 2019. https://tinyurl.com/24wschry (accessed 17 May 2022)

Raising the Levy: Will the new Health and Social Care Tax work?. 2021. https://tinyurl.com/yt4urf4n (accessed 17 May 2022)

Explainers: Health and Social Care Levy. 2022. https://tinyurl.com/2p93vxyt (accessed 17 May 2022)

Social care funding: a rise in national insurance. 2021. https://tinyurl.com/mray6ppa (accessed 17 May 2022)

The levy is not a magic fix

26 May 2022
2 min read
Volume 31 · Issue 10

The announcement that extra taxation measures would be introduced for the whole of the UK (the Health and Social Care Levy Act 2021) was made on 7 September 2021, with a call for its implementation at the earliest opportunity so as to increase funds for the NHS and equivalent bodies. The levy proper, which will come into effect in April 2023, is a tax of 1.25% on earnings, the proceeds of which are payable to the Secretary of State towards the cost of health care and social care. In the meantime, for the fiscal year 2022/2023, National Insurance (NI) contributions for employers and employees will increase by 1.25% temporarily (HM Revenue and Customs, 2021). The self-employed are also subject to the increase. From April 2023, when the levy starts, contributions will return to the current rate. Those above state pension age will not be affected by the NI increase but will be subject to the levy next year.

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