Calls to abolish the social security increase have been rejected by ministers after lower house chairman Jacob Rees-Mogg argued before cabinet that the increase should be put on hold.
Transport Secretary Grant Shapps insisted on Thursday (Jan. 6) that the decision be taken collectively as there are “very good reasons” for the 1.25 percentage point increase to support the coronavirus backlog in the NHS and provide welfare revise.
A significant number of Tory MPs opposed the April increase, as did Labor, and Lord Frost resigned from the cabinet, citing high taxes as one of his main concerns.
It was understood that Mr. Rees-Mogg Chancellor Rishi Sunak said at the cabinet meeting on Wednesday that the increase should be canceled to contain the cost of living crisis that is engulfing the government with soaring inflation and energy bills.
Mr Shapps declined to comment on the details of the cabinet discussions but told BBC Radio 4’s Today program: “We have made our decisions. We have a collective responsibility.
“There is a very, very good case, I think everyone will agree, both for the process of catching up on the backlog that the coronavirus has created in the operations and procedures of the NHS, as well as for resolving an historic, rather unforgivable situation in of you, if you happen to have certain types of illnesses, especially dementia, you may lose your home because you are not cared for by social services.
“We as the government made the decision to take care of these things and we determined how we are going to do it, which means an increase in national insurance.”
Labor also increased pressure on the government during the Prime Minister’s questions on Wednesday, with Vice-Chairwoman Angela Rayner accusing Boris Johnson and the Chancellor of leading “on economic mismanagement, low growth and neglect of our public services”.
“And your determination to fix that? Put more taxes on working people, ”she said.
“Combine the tax hike with rising energy prices and the average family is faced with a £ 1,200 hit – this is an iceberg right in front of you, so it’s finally going to stop and change course … families?”