The increase in national insurance payments for millions of people already struggling to deal with the cost of living crisis is both right and fair, the health secretary has said.
Sajid Javid said the levy of an extra 1.25 percentage points, due from Wednesday, was needed to pay for health and social care after the pandemic.
The government has pressed ahead with its plans to increase national insurance contributions for both workers and businesses, despite calls from businesses groups, unions and some Conservative MPs to at least delay the introduction. A planned change to free some of the country’s lowest earners from national insurance contributions altogether is not due to be implemented until the summer.
Defending the hike, Javid told Sky News the impact of the Covid-19 pandemic had been unprecedented. He added: “When we spend money on public services, whether it’s NHS or anything else, for that matter, the money can only come from two sources. You raise it directly for people today, that’s through taxes, or you borrow it, which essentially you are asking the next generation to pay for it.
“I think it is right that we pay for what we are going to use as a country but we do it in a fair way. This levy, the way it is being raised is the top 15% of earners will pay almost 50%. I think that is the right way to do this.”
Critics have accused the government of placing a disproportionate burden on lower earners by choosing to levy a regressive tax.
“It is the wrong tax at the wrong time and people are really, really struggling to pay their bills. And this is just going to impact on them very, very hard,” said the Labour leader, Keir Starmer.
Starmer told BBC Radio 5 Live the government had chosen to place the burden on people in
Read more on theguardian.com