The controversial 1.25% rise to national insurance, which will be separated to become the social care levy in 2023 to directly fund the NHS, affects everyone under the state pension age or earning more than £9,880 annually.

It means that, instead of paying national insurance contributions of 12% on earnings up to £50,270 and 2% on anything above that, employees will now pay 13.25% and 3.25% respectively. The self-employed will see equivalent rates go up from 9% and 2% to 10.25% and 3.25%.

Announced in September last year, the government stated that the measure will bring in an extra £39bn over the next three years to tackle the Covid-19 backlog and reform adult social care.

At the same time the dividend rate will rise by 1.25% across the board from 6 April. The dividend ordinary rate will be set at 8.75%, the upper rate will be 33.75% and the additional rate will be 39.35%. The dividend trust rate will also increase to 39.35% to remain in line with the dividend additional rate.