Why is national insurance going up? How much will NI rise in 2022 and why is our NI changing?

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.

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.

The increase will raise £12 billion, with Northern Ireland, Scotland and Wales expected to receive £2.2 billion to spend on health and social care.

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.

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