What the rise in National Insurance contributions means for you

National Insurance contributions are due to increase from 6 April. Saloni Sardana explains the reasons behind the rise, and how much it will cost you.

Boris Johnson visiting a care home
The rise in National Insurance contributions is intended to increase funding for social care
(Image credit: © Paul Edwards / WPA Pool / Getty Images)

Consumers are being hit by a double whammy to their cost of living this April, with a rise in National Insurance contributions and the energy price cap rise kicking in.

UK prime minister Boris Johnson has come under pressure to delay a rise in National Insurance at a time where inflation is spilling into almost everything. Many Conservative MPs have urged Johnson to delay the rise, but to no avail: from April 2022, class one National Insurance contributions (also known as NICs) will rise by 1.25 percentage points.

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Row 0 - Cell 0 Current ratesRates from April 2022
Row 1 - Cell 0 Main rateHigher earnings rateMain rateHigher earnings rate
Employees12%2%13.25%3.25%
Self-employed9%2%10.25%3.25%
Employers13.8%13.8%15.05%15.05%
Saloni Sardana

Saloni is a web writer for MoneyWeek focusing on personal finance and global financial markets. Her work has appeared in FTAdviser (part of the Financial Times),  Business Insider and City A.M, among other publications. She holds a masters in international journalism from City, University of London.

Follow her on Twitter at @sardana_saloni