Boris Johnson addresses booster vaccinations for the elderly
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The move would break his 2019 manifesto pledge to keep NI contributions at the same rates and will result in around 25 million people paying more tax. However, there is still disagreement between the Prime Minister and his Chancellor Rishi Sunak over how much of an increase there should be. The Daily Telegraph reports Mr Johnson favours a 1 percent hike, whereas the Treasury is pushing for a 1.25 percent increase.
The plans envisage limiting the amount anyone will have to pay on social care in their lifetime to between £60,000 and £80,000, a source told the newspaper.
Additionally, the so-called “floor” will be significantly raised, in a bid to protect vulnerable elderly people from being forced to sell their properties to pay for care.
Currently, a person must possess less than £23,250, before the Government will step in to help.
Under proposals being discussed, that threshold will rise to £100,000.
Money from the NI rise will also be made available to the NHS, so as to help clear backlogs created by the Covid pandemic.
Around 5.5 million people are waiting for NHS hospital treatment in England, with fears that could rise to 13 million.
The proposals should raise between £10 to £13 billion a year for the Treasury, depending on the performance of the UK economy.
The plan represents a considerable political risk for the Prime Minister, as it breaks a clear 2019 manifesto pledge not to raise NI contributions.
“We promise not to raise the rates of income tax, National Insurance or VAT,” the manifesto said.
However, Downing Street insiders are confident voters will approve of the measures and that there will be a political upside for the Tories.
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A Cabinet minister told the Daily Telegraph: “Personally, I think the Conservatives will get a lot of credit for this.
“Most voters aren’t ideological. They will think ‘that is a difficult thing to do’.
“It will be harder for Labour to make the argument that the Tories don’t care for the NHS.”
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