On 17th October, Chancellor of the Exchequer, Jeremy Hunt, issued an emergency statement confirming that the reversal of the planned 1.25% rise national insurance was continuing to go ahead. From 6th November 2022, the temporary 1.25 percentage point increase in National Insurance rates will be reversed for the remainder of the financial year.
This change to National Insurance contributions applies to:
Class 1 (paid by employees)
Class 4 (paid by self-employed)
secondary Class 1, 1A and 1B (paid by employers)
The Health and Social Care Levy, due to come in next year, will also no longer go ahead. This Government anticipated that this would help almost 28 million people across the UK keep more of what they earn, worth an extra £330 on average in 2023-24, with an additional average saving of around £135 this year. The funding for health and social care will now come from general taxation.