In April 2022, all working adults in the UK will see an increase on how much they pay towards their national insurance.
The increase is being brought in to inject money into health and social care, but with rising costs of living and inflation at its highest rate in thirty years, what does this mean for people in the UK?
Here's everything you need to know about why national insurance is going up.
Cost of living: Price of home heating oil falls for seventh consecutive week, petrol and diesel also continue to drop in cost
Inspirational NI couple in farm business focused on healthy food
Further significant drop in the price of petrol, diesel and home heating oil
MOT tests in Northern Ireland: PSNI and DVA advise how to stay legal despite five month backlog
East Belfast jazz club taking music world by storm
How much will national insurance payments increase?
Payments for national insurance will increase by 1.25%.
Unlike other national insurance contributions, this increase will be paid by all working adults in the UK, including anyone over the age for state pension.
Downing Street explained that a basic rate taxpayer who earned £24,100 would pay £3.46 a week, or £13.84 a month.
Why is national insurance going up?
The Prime Minister, Boris Johnston has cited the cause of the increase of national insurance as the Covid pandemic.
It is thought the £12 billion that the increase will raise, will go towards clearing the NHS backlog and towards social care reform.
Speaking to MPs about the increase, he said:
“No Conservative government ever wants to raise taxes and I will be honest with the House - yes, I accept that this breaks a manifesto commitment, which is not something I do lightly."
“But a global pandemic was in no one’s manifesto and I think the people of this country understands that in their bones and they can see the enormous steps this government and the treasury have taken.”
When is the national insurance rise coming in?
The national insurance that we pay will be increasing from April 2022.
More from the News Letter: