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<p>I have regular discussions with my Cabinet colleagues on a range of issues, including
National Insurance contributions (NICs).</p><p> </p><p>The Government is committed
to responsible management of the public finances. That is why the Government has taken
the tough but responsible decision to increase taxes, introducing a UK-wide 1.25%
Health and Social Care Levy based on NICs, in order to fund a significant increase
in permanent spending on the NHS and social care. <ins class="ministerial">There is
a significant Union dividend for Wales within this levy, meaning that Scotland, Wales
and Northern Ireland will benefit by around 15% more than is generated from their
residents, equivalent to around £300 million every year on average.</ins></p><p> </p><p>Regarding
the impact on households; NICs is progressive, the Primary Threshold means that the
lowest earners do not pay any NICs. The highest earning 15% will pay over half the
revenues raised by the Levy and 6.1 million people earning less than the Primary Threshold
(equivalent to £9,880 a year in 2022-23) will not pay the Levy.</p><p> </p><p>Regarding
the impact on businesses; while it is fair that businesses contribute, as they benefit
from having a healthy workforce, big businesses will pay the most. 70% of the money
raised from business will come from the biggest 1% of employers (those with at least
250 employees). Just under 40% of all employers with employer NICs/Levy liabilities
(630,000 employers) are expected not to pay the Levy due to the Employment Allowance.
The next 42% of businesses (675,000 employers) will face an average increase of £475
per year, less than 1% of their overall wage bill.</p><p> </p><p> </p>
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