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Forum Home  →  Discussion  →  Other areas of social welfare law  →  Thread

NI contributions

chris smith
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HB Help, Sussex

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Total Posts: 82

Joined: 18 June 2010

In the 2003 National insurance changes the Labour government introduced a 1% levy for the NHS.  But it also doubled the amount of the contributions to the NHS made from ordinary National insurance payments, thus reducing the national insurance fund .  See Section 4 of the National Insurance Act 2002.

The average contribution went up from roughly 1% of the earnings on which contributions were made to roughly 2%.  Since ordinary national insurance contributions made by employees are roughly 10% of this income, it doubles the amount taken out of NI contributions and paid to the NHS from about 10% to about 20%

So far as I can see, this raid on the national insurance fund was never repealed and is still in place.

But can someone who has a current version of section 162(5)  of the Social Security Administration Act tell me if it is?

nevip
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Welfare rights adviser - Sefton Council, Liverpool

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Joined: 16 June 2010

Consolidated Regs, here:

http://www.dwp.gov.uk/docs/a1-1801.pdf