National Insurance Increase

The decision by the UK Government to increase National Insurance was not taken lightly, but it was necessary to confront the challenges facing health and social care in the UK.

The money raised from the National Insurance increase will be ringfenced to help fund the NHS and social care, and will be available from April 2022 when National Insurance Contributions for working age employees, self-employed, and employers will increase by 1.25 per cent. 

In Scotland, health and social care is a devolved matter, and I have been assured by UK Government Ministers that money raised through the UK-wide Health and Social Care Levy and the increase in dividend tax rates will flow directly to Scotland, resulting in additional funding worth around £1.1 billion each year by 2024/25. 

Taken together with the UK Government’s generous funding of the Scottish Government – which in 2022/23 year is equivalent to over £126 per head for every £100 spent per head on comparable services in England – I hope that the money raised will be used by the SNP Government to deliver significant benefits for Scotland’s health and care system as we recover from the pandemic.