Tax rise for under 50s on the horizon

The Government Actuary’s Department (GAD) said the state pension fund, which is funded by national insurance contributions is under considerable strain due to Britain's ageing population.

The GAD believes that “class 1” contributions from employers and workers need to rise from the current 22 per cent to 27 per cent by 2035. This would result in national insurance contributions from these groups raising from £90billion to about £113billion.