'Manifesto-breaching, unfair and economically damaging' - St Helens MP condemns government's National Insurance rise

The government announced this week that an extra tax will be added from next year to fund social care in England, and help the NHS recover after the pandemic.

The planned changes will see employees, employers and the self-employed paying 1.25p more in the pound for National Insurance from April 2022.

From April 2023, National Insurance will return to its current rate, and the extra tax will be collected as a new Health and Social Care Levy.

The current rate of National Insurance is 12% on earnings between £9,564 and £50,268. However, anything earned above this amount attracts a rate of just 2 per cent.

The increase means that for an employee on £20,000 a year, they will pay an extra £130. Someone on £50,000 will pay £505 more.

A major criticism levelled at the hike is that the anything earned above £50,000 is taxed at a rate of 2 per cent - so the increase will have a proportionally smaller impact on the highest earners.

There has been criticisms that the policy will impact younger people and those on lower wages the most, as the changes will tax a higher proportion of the money earned by those on a lower pay packet.

The move has also been condemned by members of the Conservative Party after Boris Johnson promised in his 2019 election manifesto that there would be no changes to national Insurance contributions.

Labour MP for St Helens North, Conor McGinn

Commenting on the Government’s Health and Social Care levy, Conor MrGinn MP, said:

“We all want to see an NHS and social care system that’s properly funded, so we can ensure high-quality services and dignity in care for every family and person in St Helens North and across our country.

“But today’s manifesto-breaching, unfair and economically damaging Tory plan simply isn’t the way to achieve that.

“This is the biggest tax hike on working families for 50 years, and it hits many key workers, low earners and young people hard, leaving many exposed to a double whammy of rising taxes and £1000 cut per year to their Universal Credit.

“And it does nothing to address the NHS backlog, nor to fix the social care crisis that’s been allowed to worsen under the Conservatives. People may still be forced to sell their home to pay for care, while our care workers who have been long under-valued and under-paid by this Government receive nothing.

“Labour is clear that we will oppose this unfair Tory jobs tax because we want to see world-class care for all those who need it, with those with the broadest shoulders paying their share to fund it first.”