Negotiations between Mr Johnson, Health Secretary Sajid Javid and Chancellor Rishi Sunak were broken off after Mr Javid was stricken with coronavirus. An announcement is not expected before Parliament’s summer recess. The NI hike would break a Conservative manifesto promise not to raise personal taxes.
The Prime Minister’s spokesperson refused to be drawn into speculation. He said: “The approval process for our proposals is still ongoing. We will define it before the end of the year.”
Business Secretary Paul Scully said he did not recognize reports of NI’s hike.
He said: “This problem has been around for a long time, and we really need to deal with it, and that is what the Prime Minister and the Secretary of Health are really determined to do.”
There have been warnings that the national insurance scheme is penalizing workers, but charities have said action is needed.
Steven Cameron, director of pensions at life insurance giant Aegon, said the move “would be difficult to justify on the grounds of intergenerational fairness.”
Caroline Abrahams, charity director of Age UK, said the organization opposes older people bearing the full burden of care, but that it “seems right that they contribute” if they do. have the means.
John O’Connell, TaxPayers’ Alliance, said: “Social care requires a more sustainable solution than increasing taxes on workers and businesses.”
Torsten Bell, of the Resolution Foundation, said that the increase in NI “asks younger, lower paid workers to contribute more than older and richer people, compared to a fairer tax increase. Income”.
Professor Len Shackleton, of the Institute of Economic Affairs think tank, said the hike would “still be a burden on working-age people at a time when jobs are precarious, inflation is rising and wages are rising. are tight “.
Comment from Jan Shortt
Reports that the government is aiming to finance welfare reform by putting 1 pence on national insurance contributions should not be viewed as a tax on young people.
Workers of all ages would invest in their future care from a kneeling sector.
Not investing today is social assistance as we know it can hardly exist, except for the well-to-do, when today’s youth retire.
While funds must be found for the health service, it is imperative that this increase in NI be contained, according to investigations by the Daily Express.
A national care service is a radical proposition, but it addresses equity-funded providers, ensures security of tenure in care homes, values and respects caregivers, and provides quality care for future generations. they need when they retire.
Jan Shortt is Secretary General of the National Pensioners Convention
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