National Insurance: Blackford criticises government plans
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In parliament today, Boris Johnson announced a painful rise to National Insurance. The tax rises are expected to impact around 25 million working Brits and how much you pay will depend on how much you earn. Here’s how much you will have to pay when the tax is introduced.
The Prime Minister confirmed his plans to raise National Insurance to fund social care.
This tax rise would break the Conservatives manifesto pledge not to raise National Insurance.
National Insurance is a tax paid by all working Brits.
From April next year, National Insurance will increase by an extra 1.25 percent for employees and employers.
National insurance hike: Boris Johnson announced the tax hikes in Parliament today (Image: GETTY)
Tax hike: The tax rises are expected to impact around 25 million working Brits (Image: EXPRESS)
How much will this cost you?
Those earning £15,000 currently pay £652 National Insurance each year.
This will rise by £54 to £706 annually.
Those earning £30,000 will see their NI contributions rise by £204 from £2,452 to £2,656.
And for those earning £50,000, their payments will rise from £4,852 a year to £5,256 – a whopping increase of £404 annually.
Tax hike: From April next year National Insurance will increase by an extra 1.25 percent (Image: EXPRESS)
If you earn £24,100 a year will have to pay an additional £180 or £3.40 a week.
Boris Johnson said the tax hikes were needed as “governments have dumped this project for decades”.
He added: “There can be no more dither and delay”.
What limits will be set on social care costs?
Mr Johnson’s plans to put a cap on the amount individuals can spend on their social care during their lifetime.
National insurance hike: PM said it was needed for “the biggest catch-up programme” in NHS history (Image: GETTY)
The taxpayer will top up the rest of this if needed.
The PM said no-one will pay more than 86k in their lifetime.
From October 2023, no one starting care in England will be made to spend more than £86,000 over their lifetime.
Anyone who has assets of less than £20,000 will have their care costs fully covered by the state.
National Insurance hike: The PM justified the 1.25 percent NI hike saying it was needed to fund care (Image: GETTY)
Mr Johnson told MPs the tax rises would stop Brits from the “catastrophic fear of losing everything.”
However he justified the move by saying “a global pandemic was in no-one’s manifesto.”
The rises will raise the billions of pounds needed to fund the PM’s ambitious shake up of the social care system.
Mr Johnson described the tax rise as a “health and social care levy.”
National insurance hike: Kier Starmer said the plans the PM was “sticking plaster over old wounds” (Image: GETTY)
The Prime Minister accepted the move breaks his party’s manifesto commitment.
But the PM said it was needed to fund “the biggest catch-up programme” in the NHS’s history.
Mr Johnson said almost £36bn will be raised from the levy over the next three years.
There has been a backlash over the plans to raise National Insurance.
Labour leader Kier Starmer criticised the plans, he said they were simply “sticking plaster over gaping wounds.”
But the PM retorted it was “deeply irresponsible” of Labour not to suggest an alternative plan to fund social care and to deal with the NHS backlog created by the pandemic.
He accused Mr Starmer of having “absolutely no plan”.
He added: “What is his answer to the backlogs in the NHS, what is his answer to the problems in social care?”
The planned changes to social care will only apply in England as Scotland, Wales and Northern Ireland have different arrangements for social care.