Amount your National Insurance will increase under Government proposals to fund social care

The government plans to increase National Insurance (NI) contributions to pay for welfare reforms and to clear the huge backlog in the NHS caused by the coronavirus pandemic.

However, a split appears to have formed between senior cabinet ministers over how much NI to increase, with suggestions that it could be as high as 2%.

Any tax hike would be in violation of the 2019 Tory Manifesto, which includes a personal “guarantee” from Boris Johnson not to increase income tax, sales tax or social security.

And critics argue that it would disproportionately affect younger and lower-income workers, while retirees would not pay extra.

In 2019, The Times reported that one in five people ages 65 and over has a total household budget of more than £ 1 million – and their accumulated net worth is £ 4.7 trillion.

Conservative MP Marcus Fysh said he was “concerned about the government’s apparent direction of travel” and warned of a “socialist approach to welfare”.

“I don’t think it’s conservative to punish working-age people and their employers with higher taxes on their employment when our manifesto doesn’t promise,” he wrote in the Sunday Telegraph.

A source close to Health Minister Sajid Javid this week strongly denied that he had pushed for social security to be increased up to 2%.

However, they did not deny that he had spoken out in favor of an increase of more than 1%, which Chancellor Rishi Sunak is said to have rejected.

The table below shows how much additional workers would pay now – and how much they would pay if increased by 1%.

income NI at the current rate NI at 1% increase

Difference at 1%

£ 20,000 £ 1,152 € 1,356 104 €
£ 30,000 € 2,452 € 2,656 € 204
€ 40,000 € 3,652 € 3,956 € 304
£ 50,000 € 4,852 € 5,256 £ 404
£ 60,000 € 5,079 € 5,583 £ 504
£ 70,000 € 5,279 € 5,883 £ 604
£ 80,000 € 5,479 € 6,183 £ 704
€ 100,000 € 5,879 € 6,783 £ 904

You can find more stories from where you live at Near you.

.

Leave a Comment