oris Johnson plans to increase National Insurance Both current and former ministers of political factions strongly condemned the funding of social care reforms.
Downing Street sources said that the details of the social care plan are still being worked out on Sunday night, and the announced date has not yet been determined.
Here, PA News Agency sees why the original plan caused such a sensation.
– What is the Prime Minister’s plan?
It was reported last week that Mr. Johnson was lining up to increase the Nationalist Party insurance Provide funding for the government’s long-awaited social care reform.
It has been suggested that later this year it has been agreed to provide additional funding of £5.5 billion for the NHS shortfall, including helping to clear the backlog caused by the coronavirus pandemic.
According to the “Sunday Times” report, the upper limit of lifelong care contributions is about 80,000 pounds, and the national insurance will increase by 1.25%, raising 10 billion to 11 billion pounds each year.
– Who will be affected by the increase in national insurance?
National insurance contributions are based on weekly financial thresholds. The first payment of £184 is 0%, the payment between £184.01 and £967 is 12%, and the remaining income is paid 2%.
According to the National Bureau of Statistics, the average weekly salary in the UK is 576 pounds, and the weekly national insurance contribution is 47.04 pounds (8.16%).
Therefore, anyone with a primary income above the 2% threshold of £967 or slightly more than £50,000 per year will end up paying a lower rate than most people whose income is below the 12% threshold.
Therefore, most of the criticism of the plan revolves around the unfair impact of rising national insurance on young and low-income workers.
-Why do some Conservative parties oppose the plan?
Economically and politically, it is definitely wrong to further expand the country to protect private assets by asking the poor to subsidize the rich.
As mentioned above, many Conservative Party ministers and big figures have publicly opposed that raising national insurance will have a disproportionate impact on young and poor workers.
Former Prime Minister Lord Hammond told Time Radio: “From an economic and political point of view, it must be a mistake to further expand the country to protect private assets by asking the poor to subsidize the rich.”
Lord Clark, who served as the Conservative Party Prime Minister from 1993 to 1997, responded to these comments. He told LBC that National Insurance had “excessive emphasis on low-income earners” and added that there was “no reason” why people continue to work after the national pension age. Don’t pay anymore.
-What does the Conservative Party Manifesto say?
Any tax increase would violate the 2019 Conservative Party Manifesto, which included Mr. Johnson’s personal “guarantee” that there would be no increase in income tax, value-added tax or national insurance.
Leader of the House of Commons Jacob Bres-Mogg In the “Weekly Wisdom” column of “Sunday Express”, he seemed to express his disapproval of the plan.
Before he continued to raise taxes and lost to Bill Clinton in the next election, he cited Bush’s promise that he would not create new taxes during his successful bid for the president of the United States.
Mr. Rees-Mogg added: “After President Bush forgot these words, voters still remember these words.”
– How do industry organizations respond to the plan?
Social care providers largely welcome the idea of tax increases, but they also urge the government to further reshape the industry.
Mike Padgham, chairman of the Independent Care Group, said that tax increases must be “just the beginning” and part of the system reform, including resolving the staffing crisis.
Caroline Abrahams, Age UK’s director of philanthropy, stated that in addition to setting a limit of “reasonable generosity”, funds are needed to “stabilize care services and begin the arduous work of rebuilding the care workforce.”
– Have any alternatives been proposed?
Former prime minister John Major It warned that increasing national insurance would be “regressive.”
On the weekend of the British “Financial Times”, Sir John instead called on the government to adopt a “straight and honest” approach to increase general taxation.
Former Tory Secretary of Health Jeremy Hunt, who is currently chairman of the Special Committee on Health and Social Care, suggested in an article in the “Daily Telegraph” that this funding may come from “new health and care insurance premiums.”
– What did the opposition say?
The Labour Party also expressed opposition to increasing the National Insurance, but the leader Sir Kil Starmer has yet to explain how he will fund social welfare reforms.
