Boris Johnson announces 1.25% hike in National Insurance

Prime Minister Boris Johnson has announced a 1.25% increase in social security from April 2022 to address the funding crisis in the health and welfare system.

Mr Johnson admitted that the new health and social security charges were against a Tory election obligation, but told MPs that “a global pandemic was not in anyone’s manifesto”.

Labor leader Sir Keir Starmer called it: “A tax hike for young people, supermarket employees and nurses.”

Cabinet has backed Boris Johnson’s plans to reform health and welfare financing.

The Prime Minister set out in the House of Commons how he intends to tackle the social crisis in England.

The tax hike will raise around £ 10 billion to be spent on the NHS as it recovers from the Covid-19 pandemic and to help people avoid crippling adult welfare costs.

The NI Ascension will take place across the UK – but the decentralized nations will decide how it will be spent – Mr Johnson said it would be directed to each country’s health service.

Boris Johnson has told MPs the government needs to help the NHS recover from Covid.

The Prime Minister told the House of Commons: “We must now help the NHS recover to provide these much-needed care to our voters and the people we love. We must now provide the means for this.

“Not only do we have to pay for the surgeries and treatments that people went without during the pandemic, but we also have to pay good wages for the 50,000 nurses who made this treatment possible and who can help us manage waiting lists that might otherwise expand 13.” Millions in the next few years. “

Mr Johnson said: “After spending £ 407 billion or more to make a living and livelihood during the pandemic from vacation to vaccines, it would be wrong to say that we can pay for this recovery without the difficult, but make responsible decisions about how we “finance it.

“As a permanent additional investment in health and social affairs, it would be irresponsible to bear the costs of higher borrowing and higher debt. Starting next April, we will be introducing a new UK-wide 1.25% health and welfare tax on labor income, legally linked to health and welfare, with dividend rates increasing by the same amount.

“This will bring in nearly £ 36 billion over the next three years, with the money from the levy going directly to health and social care across the UK.”

The Prime Minister told MPs: “No Conservative government will ever raise taxes and I am honest with the House, I accept that this breaks a manifest commitment – which I do not do lightly.

“But there was no global pandemic in anyone’s manifesto, Mr. Spokesman.

“I think the people of this country understand that in their bones and can see the tremendous steps that this government and the Treasury Department have taken.”

He continued, “This is the right, sensible and fair approach – to allow our amazing NHS to come out of the crisis strong, to manage the Covid backlog, to fund our nurses and to ensure that people get the care and treatment they need in the right place at the right time in the region and end a chronic and unfair fear for millions of people and their families across the country. “

Ministers, who had remained largely in the dark on the details of the proposals, were briefed during the first personal cabinet meeting that year on Downing Street.

The Prime Minister’s official spokesman said: “The cabinet approved the proposals put forward.

“There was broad consensus that this is a long-standing problem, particularly on the welfare side, that has been hidden for too long and needs to be addressed.”

Mr Johnson, Chancellor Rishi Sunak and Health Minister Sajid Javid briefed cabinet ministers about the package.

The Prime Minister’s official spokesman said they had set out the plan to remove the Covid backlog in the health system, reform adult welfare and “bring the health and welfare systems closer together on a long-term sustainable basis”.

The spokesman said: “Cabinet agreed that the challenges facing our NHS and the care sector are closely related and that a lack of integration often leaves people stuck in the wrong care setting.

“The Prime Minister stressed that under the current care system, anyone with assets over £ 23,350 pays in full for their care, which can lead to rising costs, with roughly one in seven people now paying over £ 100,000.

“The Prime Minister said the changes he will announce today will address this issue that is causing chronic and unfair anxiety to millions of people across the country.”

Under the current arrangements, anyone with assets over £ 23,350 will pay in full for their care, but No. 10 said the cost was “catastrophic and often unpredictable”.

Ahead of his Commons statement, Mr Johnson said, “We must act now to ensure that the health and care system has the long-term funding it needs to continue fighting Covid and addressing the arrears and injustice of the catastrophic costs to end social welfare.

“My government will not shy away from the tough decisions that are required to get NHS patients the treatment they need and to fix our broken welfare systems.”

Mr Johnson, along with Chancellor Rishi Sunak and Minister of Health Sajid Javid, will attempt to sell the plan to the public at a press conference on Downing Street.

The Prime Minister has announced that the government will launch the “biggest catch-up program” in health care history.

He told MPs: “Today we are embarking on the biggest catch-up program in the history of the NHS by limiting the backlog on Covid by increasing hospital capacity to 110% and allowing 9 million more appointments, scans and surgeries.

As a result, the NHS will seek to treat about 30% more elective patients than it did before Covid by 2024-2025, while waiting lists worsen before they get better. And we will also solve the long-term health and social problems that the other party has certainly failed to address. “

It is reported that lifelong care contributions will be capped at around £ 80,000 and national insurance will be increased by 1.25 percentage points to increase between £ 10 billion and £ 11 billion per year.

Prior to the announcement, No. 10 was kept silent on the details, but it had been reported that the proposals would be labeled health and social contributions.

Vaccine Minister Nadhim Zahawi told Sky News that although the UK economy had gone through an “unprecedented shock” after the coronavirus pandemic, he wanted to meet all of the manifesto commitments.

When asked on Sky News if he was “comfortable” breaking his commitment to the 2019 Manifesto, he said, “I want to keep every single Manifesto promise we make, that’s the right thing to do.

“We have had an unprecedented shock to the economy due to the global pandemic and have had to grapple with it and make some really tough decisions.”

As another sign of Tory discontent, former Conservative leader Sir Iain Duncan Smith told The Telegraph that the plans were a “sham” this week on the proposals.

The Guardian reported that a conservative front bencher is considering their position on the plans.

Shadow Health Secretary Jonathan Ashworth said: “A long-term welfare plan and a rescue plan to deal with the crisis the NHS has been in for years are both long overdue.

“The Prime Minister needs to outline how he will quickly reduce waiting lists, support NHS workers, repair decaying hospitals and provide modern equipment to accelerate the diagnosis of deadly diseases and, most importantly, ensure that more people have access to the social services that are you need. ”

Liberal Democrat leader Sir Ed Davey said: “Boris Johnson has given voters a cast-iron guarantee that he will not increase social security – and now he is breaking voter confidence again.

“Worse, the government’s plans will not resolve the social security crisis. Our loved ones are still not getting the high quality care they need. “

Mr Johnson also announced that as of October 2023, no one starting care in England will be forced to spend more than £ 86,000 in their lifetime, Boris Johnson told MPs, telling MPs he would save people from the “disastrous.” Fear of losing everything ”.

Commenting on today’s government announcement on long-term care funding, Shona Lowe, abrdn’s Managing Director – Private Client & Corporate Director, Financial Planning, said, “Today’s announcement gives us much-needed hope that long-term care will be addressed, if not all with which we agree. Conversation about how long-term care is funded is often delayed by people until it is too late. Raising awareness of the issue and its potentially significant impact on family finances should increase customers’ willingness to include it earlier in their financial planning.

“Future planning can be a difficult area for customers, especially when considering the possibility of deteriorating physical and mental health. Wills and powers of attorney are now an integral part of this future plan, and this proposed reform should ensure long-term care planning as well. That is good for those affected and their extended family. “

Boris Johnson said the state should aim its aid to protect people from the “catastrophic fear of losing everything to pay for their care,” adding, “That is what this government will do.

“We are setting a limit to what can be asked of people, and we will work with the financial services industry to innovate and help people insure themselves against spending up to that limit.

“Wherever you live, regardless of your age, income or state of health, as of October 2023, no one will pay more than £ 86,000 in their lifetime and no one with assets less than £ 20,000 will have to contribute out of their life savings or residential property.

“That’s £ 14,000 today.

“In the meantime, anyone with assets between £ 20,000 and £ 100,000 is eligible for means-dependent assistance, and this new capital limit of £ 100,000 is more than four times the current limit and is helping many more people with modest assets.”

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