The insurance and long-term savings industry contributed a record £17.2bn in tax to the UK economy in 2021–22.
A study by PwC, based on data from 29 members of the Association of British Insurers (ABI), reveals that the sector contributed 6.9% more in tax in 2021–22 than in 2019–20.
The ABI said the record figure shows that the industry has continued to contribute significantly to the UK economy, supplying 2.1% of the government’s tax receipts for the period, despite rising inflation and market volatility.
The contribution includes £4.8bn from corporation tax, irrecoverable VAT and employment tax, and £12.4bn collected through insurance premium tax, employee income tax and National Insurance contributions.
- The aggregate funding level of UK pension schemes improved drastically by around £400bn in 2022, according to XPS Pensions Group. Last year, gilt yields rose by around 3%, resulting in a 35% reduction in the value of pension-scheme liabilities. This led many UK pension schemes to move into a surplus position for the first time since aggregated records began, the group added.
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