Boris Johnson has outlined plans to increase social security contributions to raise £ 36 billion for health and social care.
In a press conference today (Sept. 7), the Prime Minister outlined his plans for “the biggest catch-up program in the history of the NHS,” adding that the pandemic has proven that the NHS cannot be improved without a better welfare system.
According to his plans, social security contributions will be increased by 1.25%, but these additional funds will only be allowed to be spent on health and social care.
Mr Johnson said: “For more than 70 years we have lived by the principle that everyone pays for the NHS through their taxes so that we can all be there when we need them.
With that in mind, we will be introducing a new UK-wide health and welfare tax of 1.25% on earned income starting April, with the statutory money going straight to health and welfare across the UK and dividend rates up at the same rate be.
“This will result in almost € 36 billion in the next three years.
The increase in Social Security contributions means those who earn £ 20,000 a year will pay an additional £ 130. Those who earn £ 30,000 will pay £ 255, those who earn £ 50,000 will pay an additional £ 505 and those who earn £ 80,000 will increase their contributions to £ 880 per year.
Mr Johnson added that the new levy was required because it would not be fair to pay for permanent health and social care improvements through “cheese pairing budgets elsewhere”.