The 2016 National insurance increase

The new UK state pension scheme that starts in April 2016 is being funded by HM Treasury by a National Insurance increase for public service employers and staff worth £5 billion in total and which will cost colleges just under 2% of their income. This increase comes on top of an increase in employer contributions to the Teacher Pension Scheme (TPS). The cost for colleges (and schools, and some universities) or employing a teacher will rise by 5% in the 2015-16 academic year without any of this extra money going into take home pay. This note explains the background and consequences of the National Insurance increase. aoc national insurance note 2 feb 2015.pdf aoc national insurance note 2 feb 2015.pdf (PDF,211.6 KB)