With effect from April 2022 people paying Class 1 and Class 4 National Insurance Contributions (NICs) will pay 1.25% more.
So, that means employers, employees and the self employed will be affected. This increase is called the ‘Health and Social Care Levy’ and, from April 2023, it will be shown as such on your tax records.
NICs stop at State Pension Age but, from April 2023, those over State Pension Age who are still working will be required to pay the Health and Social Care Levy for as long as they continue in paid employment.
Worries have been expressed about the status of AFPS pensions and EDP income. These are not liable to NICs nor is there any suggestion that this will change.
The people who will be affected are described in the second paragraph of this document which is lodged in the House of Commons Library, and it limits the application of the levy to Class 1 and Class 4 NIC payers and those over State Pension Age who are still working.