PM confirms introduction of Health and Social Care Levy

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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.