The government is planning to increase the cost of the National Insurance (NI) partnership to pay for social care reforms while dealing with large NHS backlogs caused by the corona virus epidemic.
Hill Live. It has been reported that the debate has caused a rift among senior cabinet ministers over how much the NI should be raised, with some saying it could be as high as two per cent.
Any tax increase would be a violation of the 2019 Tory Charter, which includes Boris Johnson’s personal “guarantee” not to raise income tax, VAT or national insurance.
Critics say the increase in NIs will disproportionately affect young and low-income employees, while pensioners will not have to pay extra.
In 2019, the Times reported that one in five people aged 65 and over have a combined household wealth of more than £ 1 million – and their combined wealth is 4. 7.7 trillion.
Conservative MP Marcus Fish said he was “nervous about the clear direction of the journey” and warned against the “socialist approach to social care”.
“I do not believe that it is conservative to punish working-age people and their employers by imposing higher taxes on their employment,” he wrote in the Sunday Telegraph.
Sources close to Health Secretary Sajid Javed this week vehemently denied that he had called for a two per cent increase in national insurance.
However, he did not disagree that he had argued for a 1% increase, which is said to have been opposed by Chancellor Rishi Sink.
The table below shows how many extra workers will now be paid – and how much they will be paid with a 1% increase.