Health and social care levy could leave workers facing £4,662 national insurance bill

New analysis from the TaxPayers’ Alliance (TPA) has laid bare the unfair impact of the new health and social care levy, with workers seeing a total national insurance bill of more than seven times that of the retired, at £4,662. This includes the contribution from both workers and their employers, including the new levy. 


Research based on ONS data shows that the bill for the retired, who face on average £596 per year in employee and employer national insurance contributions, will be dwarfed by the £4,662 contribution of the non-retired. This could see around 1,077,435 older people in work contribute more to the levy than those of the same age who have retired. 

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The distributional analysis also estimates that the levy will result in poorer workers paying a higher proportion of their income in national insurance. For poorer non-retired households, national insurance would rise from 7.22 per cent to 7.93 per cent of their gross income, compared to richer ones who would see a rise from 4.72 per cent to 5.21 per cent. This is because national insurance is a regressive tax, which hits the poorest hardest.           


The campaign group have opposed the new hike, calling for a fairer and more sustainable solution for fixing social care than forever ramping up national insurance rates.

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