Here’s How The Government’s National Insurance Rise Will Affect You
Prime Minister Boris Johnson has announced plans for a £12 billion annual package of tax increases, beginning from next April onwards.
Despite the Conservatives pledging in their 2019 manifesto not to raise national insurance (NI), VAT or income tax, the Cabinet is now backing plans to raise NI by 1.25% from April 2022, angering a number of voters.
The intention behind this plan is to help the struggling social care sector and alleviate coronavirus-related backlogs. Currently, an approximate 5.5 million people in England are waiting for non-emergency treatment on the NHS, a figure that may well soar to 13 million over the course of the next few years, according to a report by the Mirror.
Speaking before parliament, Johnson declared that ‘it would be wrong for me to say that we can pay for this recovery without taking the difficult but responsible decisions about how we finance it’.
People up and down the country are now wondering exactly what this change will mean for them in their day-to-day lives, with all employees set to pay more NI tax.
As per Politics For All, those earning £20,000 will now pay an extra £130 per year, while those on £30,000 will pay an additional £255.
This goes up for those earning £40,000 or more (to £380), and again for those with wages exceeding £50,000 (£505) and £60,000 (£630).
Those earning £70,000 will pay an extra £755, with this going up once they reach the £80,000 bracket (£880). Earners with incomes exceeding £100,000 will pay up an extra £1,130.
Nurses United UK have slammed the planned rise, which will be voted on today, September 8, describing it as a further ‘pay cut’ for NHS workers.
As per Nursing Notes, lead organiser Anthony Johnson said:
There are billionaires who have increased their profits during this pandemic. They’ve done so by closing down our retail stores and used a global pandemic to make a profit off of our misery.
What a surprise that this Government, funded by those billionaires, is deciding to invest in more privatisation and is making frontline NHS workers and the rest of us pay for it?
This is not a recipe for more staff, they need restorative pay rises to bring our NHS back to safety, not more pay cuts.
In April 2023, NI will once again return to current rates, at which point the government will introduce a new health and social care tax of 1.25%.
The money raised through increasing NI will reportedly fund an additional nine million NHS checks, scans and surgeries, and will also go towards innovation with the health service. The social care sector will receive an approximate £5.3 billion in 2022-23 plus an additional £5.3bn in 2024-25.
Scotland, Wales and Northern Ireland will also receive an extra £2.2 billion in additional health and social care funding.
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