Labor leader Sir Keir Starmer has told the Prime Minister that his party will reject plans to increase social security to fund welfare.
In a letter to Boris Johnson, which on Tuesday will reveal his plans to repair the crumbling welfare system in the House of Commons, Sir Keir said Labor supported tax increases to overhaul the system.
However, he said that an increase in social security would “hit workers, including low-income workers and youth, hard” and disproportionately affect companies that have been harmed by the pandemic.
Sir Keir said, “The taxes paid on welfare should be fair across generations and all forms of income. Those with the broadest shoulders should pay more – not the working class families who are now prepared for an unfair tax hike. “
He added, “We said that this additional investment would have to be funded through tax increases – but increasing social security contributions is not the way to go.
“It would hit working people hard, including low paid and young people, and put a huge strain on companies as they try to get back on their feet.”
It is reported that lifelong care contributions will be capped at around £ 80,000 and Social Security will be increased by 1.25% to increase between £ 10 billion and £ 11 billion per year.
But the reported proposals have been criticized by Tory backbenchers, among others.
Former Conservative leader Sir Iain Duncan Smith told The Telegraph the plans were a “sham” for failing to reform the welfare system, while the newspaper also reported that the government is considering a snap vote in the House of Commons this week To hold proposals.
Rachel Harrison, GMB’s national union representative, said, “We all know that our crumbling welfare system is in dire need of more money.
“But raising regressive social security – which takes money out of the pockets of the worst paid workers is not the way to go.”
Sir Keir added that if Labor “really resolves the welfare crisis and has a fair funding model” would work with the government on a long-term plan.
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