National Insurance: Ken Clarke says working pensioners should pay
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Former Conservative Chancellor and Home Secretary reflected on the issue facing Boris Johnson as the Primeminister attempts to raise funds for social care. Early reports have indicated that Boris Johnson intends to increase the National Insurance, despite this breaking a campaign promise not to raise taxes. While speaking on LBC Lord Ken Clarke argued that those above 65 should continue to pay council tax to ensure that if this is implemented, the burden is spread more evenly through the population.
Lord Clarke said: “There is no reason why people in full-time work, working after the age of 65 should stop paying National Insurance.
“I retired when I was 79, suddenly when I got to 65 my take-home pay from my salary became more than that of my younger colleagues.
“This is because I suddenly stopped paying National Insurance.
“As a bonus, I could take my state pension on top.
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“The MPs know that it doesn’t matter that much although it was very nice.
“As a prize for being 65, I took home much more of my salary than my colleagues did.”
Any rise in NI is expected to hit the working population of the UK the hardest.
Around 25 million working Brits are expected to be impacted by these new plans.
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The Government has been blasted for breaking its 2019 election manifesto which said: “We promise not to raise the rates of income tax, National Insurance or VAT.”
The Government hasn’t outlined its final plans for the tax rise.
Downing Street allegedly backs a one percent rise whilst the Treasury wants to see a figure as high as 1.25 percent according to a government source.
Sajid Javid is even said to be pushing for a two percent rise.
He believes the expected £10 billion raised from a one percent would not be enough, according to The Times.
The rise comes at a time when the Government is facing criticism for cutting the £20 a week uplift in Universal Credit (UC).
Many have condemned the plan for protecting the inheritances of those with means.
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