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Health and Social Care Levy

Earnings and benefits 2022/23 2021/22
Earnings, benefits and profits subject to NIC 1.25% N/A

The Health and Social Care Levy (HSCL) is designed to generate an additional funding of £12 billion a year for the NHS and social care across the UK.

For 1 year from April 2022, an increase of 1.25% will be applied to National Insurance Contributions (NIC); it will be added to both employee and employer Class 1 NIC, as well as Class 1A, Class 1B and Class 4 NIC.

From April 2023 the 1.25% HSCL will be applied separately and NIC will revert to the 2021/22 rates, but the NIC thresholds will continue to be applied to determine when the HSCL becomes payable.

Those in work who are above the state pension age will pay the new levy from April 2023, when it is applied separately, but not in 2022/23 when it is included within NIC.

Also, from April 2022 a 1.25% increase will be applied to income tax for those who receive dividend income from shares.