National Insurance rise is ‘daylight robbery’ says Sir John Redwood
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The rise is meant to be temporary, lasting until April 2023 from where it will then turn into the new Health and Social Care levy charged on both working Britons and working pensioners. The rise will coincide with increasing energy prices, record high inflation and a cost of living crisis, making many unsure of their financial future.
The average worker is expected to pay £255 more annually in National Insurance contributions once this rise takes effect.
Concerns have been raised especially about the impact this increase will have on low-income families already struggling with the cost of living crisis.
The rise is said to help the government fund social costs and to ease the pressure the NHS caused during the pandemic.
However, some have argued that the funding gap seen in the post-pandemic economy is due to a range of other potential factors.
Twitter user Howard Beckett said: “Rishi Sunak is the wealthiest chancellor in history. He thinks it’s the ‘right plan’ to cut Universal Credit and raise workers national insurance taxes. He’s wrong. Taxing wealth, including his, is the right plan.
“There are 171 billionaires in the UK with a total wealth of £560billion. Taxing their wealth over £10million at just 3 percent would raise almost £60billion.
“Stop the tax increases on workers. Tax the billionaires.”
Fidel UK added to the conversation: “Or they could tax Amazon, Google, Facebook, Starbucks & Microsoft, except we take and those companies wouldn’t!”
Kate Wilson also tweeted: “A government who are acting in ways that will increase poverty and homelessness with failure to act on energy bills, cost of living and increases on national insurance.
“These problems are only going to get worse.”
Twitter user SoozeSuzie added: “The National Insurance system needs to be fairer and linked to total income, rather than ‘PAYE earnings or Class 4 NI’.
“If Directors paid their fair share a hike in NI contributions may not be needed.”
The user was making reference to the way National Insurance on income is calculated.
Workers earning between £797 and £4,189 per month pay 12 percent in National Insurance contributions, which will increase to 13.25 percent in April.
However, people earning more than £4,189 a month only pay two percent, which will rise to 3.25 percent in April. Meaning that the more one earns the less National Insurance they potentially pay.
Some have defended the decision to increase the tax rate as the unprecedented costs of the pandemic do need to be paid somehow.
daveDaveRoom tweeted: “Did you really believe there was going to be no payback on COVID or Brexit. Companies & individuals have been supported throughout this crisis.”
Express.co.uk readers have also taken to the comments section to make their voices heard on this topic.
Reader Birdmaniw shared: “People complain bitterly when social care is an abysmal failure and when tax has to go up to pay for it to be improved they complain again.”
To which, reader Hashtag69 replied: “How much more should we actually be taxed? We pay income tax then NI is just another tax, we’re taxed on pretty much everything we buy by way of VAT, while the government gives away billions in foreign aid, houses the world’s scroungers at our expense and then rewards their friends with contracts worth millions they’ve squandered billions upon billions yet we’re supposed to pay more, the politicians aren’t even paying the extra NI we’re paying it.”
Express.co.uk contacted the Treasury for comment on the matter, where it stated the Health and Social Care levy will benefit people across the country, strengthening the adult social care system.
The Treasury also referenced the UK’s “progressive income tax system”, stating the top one percent of income taxpayers are projected to pay 28 percent of all income tax in 2021-22.
It cited a global tax agreement signed in October 2021, where 130 countries committed to implementing a global minimum rate of 15 percent corporation tax on the largest multinationals.
The Government added: “We firmly believe that where possible it is in the best interests of children to be in working households. A child living in a household where every adult is working is about five times less likely to be in relative poverty than a child in a household where nobody works, and people are at least £6,000 better off in full time work than on benefits.
“We’re providing around £21billion this financial year and next to help families with the cost of living, including cutting the Universal Credit taper rate to make sure work pays, freezing alcohol and fuel duties to keep costs down, and helping households with their energy bills through our £9.1billion Energy Bills Rebate.”
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