As it happened: Boris Johnson announces 1.25% social care tax rise

7 September 2021, 11:02 | Updated: 7 September 2021, 14:22

Boris Johnson makes major announcement on tax and social care | Watch LIVE

  • There will be a 1.25% health and social care levy from April 2022 based on National Insurance
  • From 2023 working age adults over state pension age will also contribute 1.25%
  • If you earn more you pay more – so if you earn: £24,100 you contribute £180 a year. If you earn £67,100 you will contribute £715 a year
  • Majority of small businesses will be "protected" claims PM
  • The highest earning 14% will pay around half of the revenues

By Patrick Grafton-Green

Boris Johnson has announced a 1.25% increase in National Insurance to address the funding crisis in the health and social care system.

He told the House of Commons that from 2023, no one starting care in England will be forced to spend more than £86,000 over their lifetime, adding he would protect people from the "catastrophic fear of losing everything".

Labour leader Sir Keir Starmer responded by describing the plan as "a sticking plaster over gaping wounds".

His Cabinet earlier backed the plans, which are expected to tear up Tory manifesto commitments.

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