{"id":120927,"date":"2021-09-05T02:12:32","date_gmt":"2021-09-05T02:12:32","guid":{"rendered":"https:\/\/fin2me.com\/?p=120927"},"modified":"2021-09-05T02:12:32","modified_gmt":"2021-09-05T02:12:32","slug":"pms-national-insurance-rise-plan-criticised-as-tax-on-young-workers-to-protect-the-homes-of-older-people","status":"publish","type":"post","link":"https:\/\/fin2me.com\/politics\/pms-national-insurance-rise-plan-criticised-as-tax-on-young-workers-to-protect-the-homes-of-older-people\/","title":{"rendered":"PM’s national insurance rise plan criticised as tax on young workers to protect the homes of older people"},"content":{"rendered":"
Boris Johnson is coming under attack from senior members of his own party ahead of a possible announcement on social care this week.<\/p>\n
The prime minister is expected to increase national insurance<\/strong> to help fund care reforms and clear backlogs in the NHS.<\/p>\n However ministers, MPs, government officials and business groups have told Sky News they are concerned about the plan – which would go against the party’s 2019 promise not to raise taxes.<\/p>\n Downing Street has not confirmed details of the announcement but a senior government source said the government “will not duck the tough but necessary decisions needed to get the NHS back on its feet”.<\/p>\n Concern about breaking a manifesto pledge stretches into the cabinet, with other members of the government worried about taxing younger workers to subsidise the care and protect the homes of older people.<\/p>\n “It doesn’t sit well with an across-the-board subsidy to help a few who have assets to protect,” said one minister.<\/p>\n The social care plans are likely to include a cap on costs designed to stop assets like property needing to be used in full to fund care fees.<\/p>\n But this has provoked concern among some MPs because of the possibility of those with high value homes benefitting the most.<\/p>\n <\/p>\n “I’m very concerned about the fact we seem to be protecting the inheritances of those with means at the same time as stripping the £20 uplift [in universal credit],” said one newly-elected MP.<\/p>\n A senior Conservative said: “It seems like a tax on middle England… it does not seem very conservative”.<\/p>\n Former prime minister John Major told the FT Weekend Festival that the policy was regressive and should be done in a “straightforward and honest fashion” through taxation.<\/p>\n Trade union boss Frances O’Grady also criticised the proposal, saying it “wasn’t right” to hit young and low paid workers with a tax increase while “leaving the wealthy untouched”.<\/p>\n The TUC general secretary instead called for the government to increase capital gains tax – a levy on profits made when selling assets like property or shares.<\/p>\n Much of the criticism has stemmed from the fact that people over the state pension age do not pay national insurance.<\/p>\n <\/p>\n The tax is also only paid on earnings, so wealthier individuals who live off rental income, savings or dividends don’t contribute.<\/p>\n Labour Treasury spokesperson Bridget Phillipson said: “Hitting low earners, young people and business is as short-sighted as this Conservative government’s management of our NHS.”<\/p>\n With national insurance also paid by employers, business groups have criticised the plan as well.<\/p>\n A spokesperson from the Confederation of British Industry told Sky News: “While social care reforms are overdue and welcome, business would urge government to explore all alternative funding options before enforcing what amounts to a tax on jobs which could derail the UK’s economic recovery.”<\/p>\n Downing Street said it was committed to bringing forward a plan for social care by the end of the year.<\/p>\n A senior government source said: “The NHS needs more money.<\/p>\n “By the time of the next election there could be 13 million people on waiting lists if we don’t act.<\/p>\n “No one should have to face lengthy waits for healthcare. We must do everything we can to properly equip to NHS to make sure everyone gets the treatment they need.”<\/p>\n