‘Very negative’: Boris faces backlash over ‘controversial’ 1.25% National Insurance hike

Martin Lewis discusses the National Insurance increase

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As the nation grapples with crippling levels of inflation, Britons have expressed their displeasure with the Government’s 1.25 percent increase to National Insurance. These changes could mean workers pay hundreds more each year.

The Government’s social care funding reforms, which will be paid for with a 1.25 percent National Insurance (NI) hike, are facing mounting backlash from voters, new research has suggested.

These changes will attempt to help fund health and social care costs for UK citizens, reducing the amount they have to contribute towards their own care.

The average British worker is expected to pay an additional £255 in National Insurance for the year to help pay for the reforms.

Employees earning £20,000 a year will pay an additional £130.

Someone who earns £50,000 a year would be made to pay £505 more.

Those earning less than £9,564 a year, or £797 per month, will not be included in the hike, as they do not pay National Insurance.

The extra 1.25 percent will appear on employees’ payslips as a higher National Insurance tax from April.

There has been a strong reaction from the British public to these reforms, with research showing a large proportion of people do not feel positive about the changes which they may have to foot the bill for.

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Almost four in five (79 percent) of Britons viewed the reforms, which will see lifetime costs capped at £86,000 and the means-testing threshold rise to £100,000, as either quite negative or very negative, according to AJ Bell.

More than half (57 percent) of Britons were ‘very negative’ about the plans, saying they will ‘never’ be able to afford £86,000 of care costs.

Only five percent of respondents were ‘very positive’ about the changes, while around one in six (16 percent) were ‘quite positive’.

Tom Selby, head of retirement policy at AJ Bell, explained how the reforms will mean Britons are likely to pay less for their care.

He said: “After a decade of broken promises on social care funding, Prime Minister Boris Johnson at least deserves credit for putting forward concrete plans to address the social care crisis.

“Currently people can face unlimited social care costs. Under reforms outlined by the Government last year, from 2023, lifetime personal care costs will be capped at £86,000 and the means-testing threshold raised to £100,000.

“The reforms will be funded through a controversial 1.25 percentage point increase in National Insurance rates for both employers and employees – although this cash is also being used to bolster the NHS.”

Mr Selby added that despite the reduction in cost of care many will receive, there are still concerns over the amount of money they may have to pay.

He said: “The relatively high level of the cost cap appears to be putting people off, with the vast majority saying they view the plans negatively.

“In fact, more than half of Brits say they are ‘very negative’ about the reforms and worry they will ‘never’ be able to afford costs up to the £86,000 cap.

“This comes as the Prime Minister faces growing concern over the timing of the planned National Insurance rise, with some Cabinet ministers reportedly voicing disquiet over the impact it could have at a time inflation is soaring and energy bills are set to skyrocket.

“This combined with negative voter sentiment will inevitably lead some to push for the changes to be delayed or shelved altogether.”

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