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IoD: Extraordinary time to consider increasing National Insurance

06 Sep 2021


Responding to reports that the UK Government is considering raising National Insurance to help pay for social care in England, Kitty Ussher, the Institute of Directors’ Chief Economist, said:

“This seems an extraordinary time to be considering adding to the cost of employing people. Due to the much publicised labour shortages, our own research shows that 73% of businesses are already concerned about rising salary-related business costs. Businesses do not understand why Government would want to add to the cost of taking on a new employee through an increase in employer national insurance at this of all times.

“National Insurance should not be used in place of general taxation. It was established to protect people financially from the risks of being unable to work, based on a contributory system, and it is on that basis that employers also make contributions. There is no logic to employer national insurance contributions being used to fund anything else.”

Full Survey Results 

739 respondents, conducted between 23rd July – 11th August  

How concerned are you about increases in your salary related business costs?

Very concerned

18%

Concerned

55%

Not very concerned

25%

Not concerned at all

2%

Don't know

0%


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