PM confirms introduction of Health and Social Care Levy
The Prime Minister has today announced plans to implement a Health and Social care levy to fund care cost reforms.
The levy will see workers paying an additional 1.25% of their wages over to the Government in order to raise the funds needed to improve health and social care across the UK.
This will initially be collected by means of a rise in National Insurance contributions of 1.25% which will come into effect from April 2022.
In a bid to spread the burden, dividend income received is also set to be subject to an additional 1.25% tax from April 2022.
From April 2023 onwards, the 1.25% Health and Social Care Levy will become a separate tax on earned income.