People could face £255 tax rise as PM set to unveil overhaul of social care sector
Johnson to hike up National Insurance prices, despite saying he wouldn't
Boris Johnson is set to address the "catastrophic costs" for social care users in England with reform proposals later today that will hit young people and low-income earners hard.
The Prime Minister is expected to breach election promises and raise National Insurance (NI) by about 1.25 percentage points in a move that is dividing the Commons. There has been pushback from both Labour and Conservative MP's who believe this is not the right way to cover the costs.
A 1.25 percentage point increase to NI would mean someone on a £30,000 salary would pay an additional £255 per year.
I’m 18 years old. If I’m earning £20k a year I’ll have to pay £100 more in national insurance while a 66 year old homeowner on £50k will pay nothing extra. The Tories are at war with the young. Never vote Tory.
— Hasan Patel 🌹 (@CorbynistaTeen) September 6, 2021
Vaccines Minister Nadhim Zahawi told BBC Breakfast the plans to "deal with a broken social care system" represented "truly historic and ambitious reform".
"One-in-seven people pay £100,000 or more for their social care, so in my view that nettle has to be grasped," he said.
Johnson will be joined by Chancellor Rishi Sunak and Health Secretary Sajid Javid for a press conference later on Tuesday.
Cant wait to not get a pay rise in line with this National insurance hike and 4% council tax increase.
LOVE those regressive taxation systems and a government that shields the wealthy from paying their fair share.
— Jess Barnard (@JessicaLBarnard) September 6, 2021
The BBC reports that the money raised from the NI increase will be fenced off somehow. The money will be targeted initially at the health service itself then will switch to social care after three years.
Former Labour health secretary and Mayor of Greater Manchester Andy Burnham said a national insurance rise was "flawed" and "unfair". He suggests that ministers should instead ask all pensioners to make a contribution of 10% of their estate, topped up by rises in other taxes, such as capital gains tax.
He told BBC Radio 4's Today programme he wanted "to introduce the NHS principle to social care - everyone would be required to contribute, but everyone would benefit".
Out of interest is anyone actually defending the principle of a National Insurance rise that means:
- the landlord with hundreds of properties pays exactly zero pence, while workers foot the bill
- the 66 year old on £50k pays nothing, the 25 year old on £20k coughs up £100
— Torsten Bell (@TorstenBell) September 5, 2021
Burnham said "for the vast majority of people they'd have peace of mind at a lower cost" and "I don't see how you can do this without asking pensioners to make a contribution".
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