Background Increase in the rates of NICs
8.In the Pre-Budget Report on 24 November 2008 the previous Chancellor announced an increase in NICs rates of 0.5% starting in 2011/12. In the Pre-Budget Report on 9 December 2009 the previous Chancellor announced a doubling of the previously announced increases. In the Emergency Budget on 22 June 2010 the Government confirmed the rate rises would remain in place as part of a wider package of measures, which also increased the income tax personal allowance, and the secondary threshold below which employers pay no NICs.
9.The Act includes provision to increase the following rates of NICs from 6 April 2011:
	the main rates of primary Class 1 and Class 4 NICs will be increased by 1% to 12% and 9% respectively;
	the Class 1 secondary rate of NICs will be increased by 1% to 13.8% and will also apply to Class 1A and Class 1B NICs; and
	the additional rates of primary Class 1 and Class 4 NICs will be increased by 1% to 2%.