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Treasury Update
22 September 2022
Type
Written Ministerial Statement
Department
Treasury
At a Glance
Issue Summary
The UK government is introducing a bill to repeal the Health and Social Care Levy, reversing a temporary increase in National Insurance rates.
Action Requested
The Government has introduced the Health and Social Care Levy (Repeal) Bill to cancel the tax rise from April 2023, providing an average tax cut of £135 for workers this year and around £330 next year. Most employees will see the reduction in their November pay via payroll.
Key Facts
- The Health and Social Care Levy (Repeal) Bill delivers on the Prime Minister’s promise to reverse a temporary 1.25 percentage point increase in National Insurance rates from 6 November.
- Around 30 million people will be better off by an average of over £500 in 2023-24 due to the NICs thresholds and Levy reversal.
- The self-employed will pay NICs at 9.73% on earnings between £11,909 and £50,270 per annum.
- Approximately 60% of businesses with NICs liabilities will see a reduction in their NICs bill, with 20,000 being taken out of paying NICs entirely.
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