Prime Minister Boris Johnson is set to announce social care reform proposals today (Tuesday 7 September) as he promises to end the “catastrophic costs” for social care users in England.
It is due to present its plans to Cabinet on Tuesday morning before laying out the details in a statement to the Commons.
The Prime Minister is expected to breach electoral promises and increase National Insurance, a tax paid by workers and employers, by around 1.25% to cover the cost of reform plans.
He will then join Chancellor Rishi Sunak and Health Secretary Sajid Javid for a press conference later that day.
The Prime Minister is also expected to announce long-term funding agreements to help the NHS respond to the Covid pandemic.
Johnson is expected to say the government will not “sidestep the tough decisions necessary” to help the service and fix England’s “broken” social care system.
However, reports that the prime minister will increase national insurance to cover the costs has sparked a backlash from both Conservatives and Labor.
‘It would greatly affect workers, including low-income and young people’
Former Conservative Chancellors Lord Hammond, Lord Clarke and Lord Lamont have criticized the plan, while former Conservative Prime Minister Sir John Major has called it “regressive”.
Labor leader Sir Keir Starmer also told the prime minister that his party will oppose plans to increase national insurance to fund welfare.
In a letter to Boris Johnson, Sir Keir said Labor supported tax increases to reform the system, but that an increase in national insurance would “hit hard on workers, including low-income and the young” and hit hard. disproportionate to companies damaged by the pandemic.
Sir Keir said: “The taxes paid by welfare must be fair for all generations and all forms of income. Those with broader shoulders should pay more, not working families who are now poised for an unfair tax increase. “
He added: “We have said that this additional investment will have to be financed through tax increases, but increasing national insurance contributions is not the right way to do it.
“It would be a severe blow to workers, including low-income workers and young people, and it would place a huge burden on companies just as they are trying to recover.”
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This notice was published: 2021-09-07 06:22:35