PM announces 1.25% 'manifesto breaking' tax hike to fund social care reform

7 September 2021, 13:53

Boris Johnson has confirmed a rise to National Insurance.
Boris Johnson has confirmed a rise to National Insurance. Picture: Alamy

By Sophie Barnett

Boris Johnson has confirmed that National Insurance will rise by 1.25% to cover the cost of reforming the UK's "broken" social care system, adding "the more you earn, the more you will pay".

The Prime Minister laid out his plans to overhaul the UK's social care system in the Commons on Tuesday, shortly after the Cabinet gave his manifesto-breaking plans the green light.

Mr Johnson says the increase will raise almost 36 billion pounds over the next three years.

He's also announced no-one will have to pay more than 86-thousand pounds for care over their lifetime.

Read more: PM's controversial social care tax hike given green light by Cabinet

Watch: PM admits controversial social care tax hike 'breaks manifesto commitment'

The 1.25% health and social care levy will be introduced in April 2022, based on a rise in National Insurance, the Prime Minister announced.

From 2023, working age adults over state pension age will also contribute 1.25%.

"If you earn more you pay more," said the Prime Minister.

So if you earn £24,100 you will contribute £180 a year. If you earn £67,100 you will contribute £715 a year.

The highest earning 14% will pay around half of the revenues.

It means from April, the average worker will have around 20 pounds less in their monthly pay.

The Prime Minister admits it goes against what he originally promised but blames coronavirus.

This story is being updated