Boris Johnson announced a 1.25% increase in national insurance from April 2022 to deal with the funding crisis in the health and social protection system.
The tax hike will raise around £ 10 billion, which will be spent on the NHS as it recovers from the Covid-19 pandemic as well as to help people avoid crippling adult social care costs .
Ministers, who had been largely kept in the dark about the details of the proposals, were briefed at the first in-person Cabinet meeting held in Downing Street this year.
The Prime Minister’s official spokesperson said: “The Cabinet has accepted the proposals made.
“There was strong agreement that this is a long-standing problem, especially on the social care side, which had been dodged for too long and needed to be addressed.”
Mr Johnson, Chancellor Rishi Sunak and Health Secretary Sajid Javid briefed Cabinet ministers on the package.
The spokesperson said: ‘The Cabinet agreed that the challenges facing our NHS and the care sector are intertwined, and a lack of integration means people are often stuck in the wrong care setting.
“The Prime Minister underlined that in the current care system, anyone with assets over £ 23,350 pays for their care in full, which can lead to increased costs, with around one in seven people now paying more than £ 23,350. £ 100,000.
“The Prime Minister said the changes he will announce today will address this problem, which causes chronic and unfair anxiety to millions of people across the country.”
Labor opposition to 1.25% increase in national insurance
Chancellor Rishi Sunak has dodged questions from Labor about why the government is considering breaking its manifesto promise by increasing national insurance to pay for welfare reforms.
Phantom Chancellor Rachel Reeves said: “The Prime Minister and Chancellor’s plans to increase national insurance will hit workers and businesses hard at the worst possible time.”
She added: “Could the Chancellor explain why he chooses a tax on jobs over other forms of income?
Mr Sunak focused his response on the fact that there is no national insurance payable by those employing persons under the age of 21, no national insurance payable on “most” apprentices up to at the age of 25, “nor on the people who will be employed in new free ports”.
He added: “Because of the steps these Conservative governments and ours have taken on the employment allowance, 40% of all small businesses pay no national employer insurance.”
Ms Reeves said Mr Sunak’s previous pledge to cut taxes on the lowest wages by cutting national insurance “is now in flames”, adding that Labor “cannot and would not support the tax on the contrary to the manifestos, economically damaging and unfair use of this conservative government.
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This notice was published: 2021-09-07 11:56:58