The government’s proposed increase in national insurance contributions will hit the poorest the hardest, say readers
Raising the rate of national insurance contributions (NICs) by 1.25 percentage points across the board is an unnecessary way to fund health and social care spending (Boris Johnson ‘fully committed’ to national insurance rise, 28 January). Instead, billions of pounds could be raised by levelling up the current rate of 2% paid on employee annual earnings above £50,000 to 12%, ie the rate currently paid on earnings between around £9,500 and £50,000.
Employee NICs are no different to income tax. We know this because HMRC’s annual tax summaries, sent to every taxpayer, combine income tax and NICs in calculating how our taxes have contributed to government spending. So there is no reason why the poorest in the land should be paying 12% on a major proportion of their income, while the richest are paying only 2% on a major proportion of theirs.
Neil Hornsby
Inverness
