Boris Johnson’s plan to increase National Insurance to help fund social care and tackle the Covid backlog has been backed by MPs.
Despite promising in the Conservative manifesto that he would not increase the tax on earnings, the Prime Minister has decided to raise NI contributions by 1.25 percentage points from April 2022.
Lifetime care costs will be capped at £86,000 and people with assets less than £20,000 will receive state-funded care.
Anyone with assets of up to £100,000 will receive some state support towards their care.
Someone earning £20,000 a year will pay £130 extra in NI, while someone on £50k will pay £505 more.
Labour voted against the move, saying the £12billion-a-year tax would hurt working age people.
Shadow Treasury Minster Bridget Phillipson told MPs: “There is not a plan for reform to social care.
“It will not create more and better paid jobs in the wider economy, it is not fair across the region, it will not end people having to sell their homes to fund their care.
“It will not help our economic recovery. The Prime Minister cannot even guarantee that it is the last unfair tax rise of this Parliament.
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“Tonight, we are not voting for a plan to fix social care, there is not one. We are voting on the third Tory tax rise on working people.”
Some Tory MPs also questioned the rise, but MPs backed the plan 319 votes to 248, a majority of 71 despite the Prime Minister having a majority of 80.
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