Government bodies ‘exempt’ from health and social care levy

The Treasury has admitted that government bodies will be effectively exempt from a new tax hike, during a committee session on efficiency in government spending.

Cat Little, director general public spending at the Treasury, told the public accounts committee that “government departments who are directly employing individuals who have to pay higher employer national insurance contributions (NICs)” will be compensated. Little went on to confirm that the gross impact of the tax increase is £14 billion, rather than the reported £12 billion.

The admission came after Sarah Olney MP questioned the Treasury over the new 1.25% health and social care levy, funded by NICs.