Prime Minister Boris Johnson is under increasing pressure from his party to not impose a national insurance hike that violates the declaration to pay for social care.
On Saturday, former Prime Minister Sir John Major joined the Conservative Party, calling it a “regression” and opposing widely expected measures against workers and employers.
Instead, he called on the Prime Minister to adopt a “straightforward and honest” approach to increase general taxation.
The government is preparing to announce this week its long-awaited plan on how to reform and fund social care. It will also include measures to provide funding for the NHS to tackle the massive backlog caused by the coronavirus pandemic.
Boris Johnson, Health Minister Sajid Javid and Chancellor of the Exchequer Rich Sunak have been discussing the details of the reforms.
According to the Sunday Times, the upper limit of lifelong care costs is approximately 80,000 pounds (110,000 US dollars), and national insurance will increase by 1.25%, raising 1.0-11 billion pounds (1.38-155.3 billion US dollars) each year.
But on Sunday the 10th insisted that the details of the social care plan are still being worked out.
Major said in a speech on the weekend of the Financial Times: “The government will have to take action to solve the problem of social care, which will mean increasing taxes.
“I don’t think they should use national insurance contributions. I think this is a retrogressive approach. I would rather do it in a straightforward way and include it in taxes.”
Any increase in taxes would violate the 2019 Conservative Party Manifesto, which includes Johnson’s personal “guarantee” that it will not increase income tax, value-added tax or national insurance.
Quite a few Conservative parties accept that some form of tax increase is necessary, but like former Health Minister Jeremy Hunt, they called for not taking the form of national insurance interest rate hikes.
Critics believe that this will disproportionately affect young and low-income workers, and pensioners will not pay extra.
Conservative MP Marcus Fysh said he was “shocked by the government’s apparent direction” and warned against adopting “socialist social care”.
He wrote in the “Sunday Telegraph”: “When our manifesto promises not to do so, I don’t think the Conservative Party will impose higher employment taxes on individuals of working age and their employers.”
Sources close to Health Minister Sajid Javid this week strongly denied that he had pushed to increase national insurance to 2%.
But they did not refute that he had advocated a rate hike of more than 1%, which is said to be opposed by Chancellor of the Exchequer Rishi Sunak.
The Labour Party expressed its opposition to the increase in national insurance, but Sir Kil Starmer will face pressure to determine how to fund social care reforms.
It is expected that the second election promise will be broken soon. According to reports, ministers are preparing to announce that the triple lock of the national pension will be temporarily replaced by a “double lock.”
This is because wage distortions during the coronavirus crisis may mean that pensioners will receive wage increases of up to 8%, while workers face more stressful periods.
This News Originally From – The Epoch Times