Spring Statement 2022: Chancellor rejects calls to delay National Insurance increase

NI thresholds raised by £3,000

Hemma Visavadia
clock • 2 min read

Chancellor of the Exchequer, Rishi Sunak, has confirmed that National Insurance (NI) contribution increases will go ahead as planned from April next year, but announces a lift in the threshold to £3,000.

In the Spring Statement, Sunak said the "difficult but responsible decision" to raise NI contributions was to help support social care and NHS funds. However, to help shoulder the new levy and tackle the cost-of-living crisis currently sweeping the UK, the Chancellor has raised the NI threshold for the amount earned before incurring a tax to £12,570, a £3000 increase, which will come into effect in July 2022. "That's a £6 billion personal tax cut for 30 million people across the UK, a tax cut for employees worth over £330 a year," Sunak noted. However, with inflation hitting a 30-y...

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