Millions of workers in the UK will begin to pay higher contributions to National Insurance (NI) from today.
In what is said to be part of a plan to raise billions of pounds for the NHS and social care, the government announced the 1.25 percentage point increase in National Insurance as part of its 2021 Autumn Budget last year, and insists it is “necessary, fair and responsible” that the rise still be introduced, despite growing pressure for it to be put off in the wake of the wider cost of living crisis.
From today, annual earnings above £9,880 will be liable for 13.25% NI contributions, and for those above a higher threshold of £50,270, the rate will be 3.25%.
Employers’ National Insurance contributions will also go up by 1.25 percentage points.
The government predicts that the tax rise will raise £39 billion over the next three years to help reduce the COVID-induced backlog within the NHS, and then later reform adult social care for the long-term.
ADVERTISEMENT
From Wednesday 6 April, the Health and Social Care Levy will begin to raise funds to help tackle Covid backlogs and reform services.
Over the next three years £36 billion will be invested in the health & social care system to ensure it has the long-term resource it needs.
— Department of Health and Social Care (@DHSCgovuk) April 3, 2022
It has been confirmed that lifetime care costs will be capped at £86,000 from October next year, and there will also be a change in the assessment of individual assets that people have to be eligible for help with care costs, as currently, only those with assets of less than £23,250 receive help, but this will go up to £100,000
Prime Minister Boris Johnson said the levy was the “necessary, fair and responsible next step, providing our health and care system with the long term funding it needs as we recover from the pandemic”.
Chancellor Rishi Sunak added: “This government will not shy away from the difficult decisions we need to take to fix our social care system and slash NHS waiting times.”
Health Secretary @sajid tells @KayBurley the National Insurance rise can only come from two sources, 'directly from people today' or borrowing it from 'the next generation'.
Health Secretary Sajid Javid also defended the move to increase NI contributions in an interview live on Sky News this morning, explaining: “All of the funding raised from it is going to go towards the extra £39 billion we are going to put in over the next three years to health and social care.
ADVERTISEMENT
“It’s going to pay in the NHS for activity levels that are some 130% of pre-pandemic, it’s going to be nine million more scans, tests and procedures, meaning people will get seen a lot earlier [but] why is any of this necessary, whether it is for health or social care?
“It’s because of the impact of the pandemic. We know it is unprecedented. It has been the biggest challenge in our lifetime.
“The impact of that is going to continue for many years.”
Leader of the Labour Party, Sir Keir Starmer, has called the NI price hikes “the wrong tax at the wrong time” in an interview on Good Morning Britain this morning, adding that: “The sad reality is a lot of the money gathered through this tax increase, in the end, is going to be filling a blackhole.”
Featured Image – National Insurance (gov.uk)
News
Government announces social media crackdown with potential ban for under 16s
Emily Sergeant
The Government has announced a social media crackdown in a bid to keep children safe amid rapid technology changes.
Prime Minister Keir Starmer wants to take ‘immediate action’ to make the online world safer for children.
The new measures announced today include a crackdown on ‘vile’ illegal content created by AI, including fast action to shut a legal loophole and force all AI chatbot providers to abide by illegal content duties in the Online Safety Act or face the consequences of breaking the law.
The Government says it’s also taking new legal powers to lay the groundwork for immediate action following its consultation on children’s wellbeing online carried out earlier this year.
No social media platform should get a free pass when it comes to protecting our kids.
These new powers introduced this week will mean Government ministers can act fast on the findings of the consultation within months, rather than waiting years for new primary legislation every time technology evolves, and this means, crucially, being able to prohibit measures like setting a minimum age limit for social media – which Australia famously became the first country to do so last year – and restricting features like infinite scrolling that are also harmful.
It’s also likely that there will be restrictions introduced on children’s use of AI chatbots, as well as options to age-restrict or limit children’s VPN, and changing the age of digital consent.
The Prime Minister has insisted ‘no platform gets a free pass’.
The Government has announced a social media crackdown with a potential ban for under 16s / Credit: Julian Christ (via Unsplash)
“As a dad of two teenagers, I know the challenges and the worries that parents face making sure their kids are safe online,” Mr Starmer said.
“Technology is moving really fast, and the law has got to keep up. With my Government, Britain will be a leader not a follower when it comes to online safety. The action we took on Grok sent a clear message that no platform gets a free pass.
“Today we are closing loopholes that put children at risk, and laying the groundwork for further action. We are acting to protect children’s wellbeing and help parents to navigate the minefield of social media.”
Featured Image – Robin Worrall (via Unsplash)
News
Pep Guardiola delivers important reminder about multiculturalism after Jim Ratcliffe controversy
Danny Jones
Manchester City manager Pep Guardiola has delivered an important message about the power of multiculturalism in his most recent press conference.
Guardiola’s comments come after the high-profile controversy surrounding his rival club across the city, Man United, whose co-owner, Sir Jim Ratcliffe, saw some of his recent remarks fall under major scrutiny.
In case you somehow missed it, the Failsworth-born British billionaire was heavily criticised after claiming he believes the UK has been “colonised by immigrants”.
Fast forward a couple of days, and while the club and the fan base are still dealing with the fallout of the story, Pep acknowledged the debate by reminding people that “embracing other cultures” makes for a “better society”.
Well put, Pep – in fact, we couldn’t have said it better ourselves.
Although he didn’t reference the 74-year-old directly after being probed on the subject by journalists, the Man City boss reiterated that his time spent living and working across the world has only broadened his mind and enriched his life.
That goes for both his professional and personal spheres, by the way, as the Catalan coach has often spoken of his love for English culture and the Manc people, specifically.
Speaking ahead of this weekend’s FA Cup game against local side Salford City, Pep described the attitudes towards immigrants around the world as a “big problem” despite most people simply leaving their country in search of “a better life”.
He also drew attention to the fact that he, like so many others in football – a sporting industry loved the world round by people from all walks of life and that the likes of Ratcliffe directly benefit from – is an immigrant working and contributing to not just the game but the British economy by being here.
Meanwhile, Manchester United have since shared a public statement on their club website and across social media, reiterating to fans and supporters the world over that they are an “inclusive club”.
‘We will continue to represent our people, our city and our fans with purpose and pride.’
The INEOS chairman, CEO and minority stakeholder in Manchester United Football Club, has since apologised (at least in part) for his “choice of language” following the divisive interview with Sky News.
In a world where plenty of people are quick to pessimism, negativity and turn to division almost by default, Pep’s message is one echoed by so many and is one that we should all keep in mind.
And for anyone who needs a more light-hearted bit of content on their timeline this week, here’s what else Pep said in his pre-match presser…
Pep Guardiola responding to a really intelligent question from a reporter:
‘Do you want to be my assistant coach, fucking hell, you are brilliant…’