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13th Sep 2021

Families on breadline ‘could break down due to national insurance hike’

Kieran Galpin


Shocker – the national insurance increase will affect poor people the worst

Families already on the breadline could collapse due to the increase in national insurance, says HMRC.

The government announced on Tuesday that national insurance would rise by 1.25 percentage points to combat the crumbling NHS and help fund social care.

Analysis prepared for the Government by HMRC was released publicly after the announcement. The report stated that the impact would be ‘significant’ on earnings, inflation, and company profits.

HMRC also stated: ‘There may be an impact on family formation, stability or breakdown as individuals, who are currently just about managing financially, will see their disposable income reduce.’

Despite the advice from HMRC, Boris Johnson believes the tax reform is ‘Progressive’, and ministers have said it’s the fairest way to fund the necessary changes.

But the HMRC report states that the change would disproportionally affect those whose primary income comes from their job and not property income, pension income, or savings.

Though Conservative officials are pretty unified in their motion, members of the opposition and the general public are also crunching the numbers in a bid to show alternative routes.

Labour deputy leader Angela Rayner called the tax hike a “slap in the face” to key workers.

Former Labour leader Jeremy Corbyn has been vocal on the issue on social media. “There should be a Wealth Tax on the super-rich – those with assets over £5m,” he tweeted.

Political commentator and Guardian journalist Owen Jones proposed numerous avenues on Jeremy Vine.

“15 per cent tax charge on investment income of the wealthiest, seven-billion pounds a year,” he said.

“Another one, capital gains tax, if you bring that up to the same level as income tax, that would bring in about nine-billion pounds.”

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