Britons face the highest tax burden in peacetime as Boris Johnson announced a £12 billion raise vowing that no one will ever have to pay more than £86,000 towards social care.
What Is The Prime Minister Announcing?
- A 1.25 percentage point increase in national insurance rates and dividend tax.
- Someone on a £30,000 salary would pay an extra £225 a year.
- Someone on a £50,000 salary would pay an extra £500 a year.
- In return, there would be a limit of £86,000 on social care costs, although that might not include accommodation.
- People will not pay for social care when their assets are below £20,000 and there will be a means test between that level and £100,000
The respected IFS think-tank said the changes added to a ‘huge year for tax rises’ with the burden at its highest sustained level for peacetime.
There was also grumbling from the Tory benches, with MPs asking Mr Johnson if he still believed in ‘low taxes’ and warning that the NHS will simply suck up the money without making genuine improvements.
Just £5.3 billion of the £36 billion of revenue raise in the next three years is expected to go to social care. The rest is earmarked for a huge ‘catch up programme’ to stabilise the NHS after the pandemic.