Two huge tax hikes will see workers pay up to £7.50-A-WEEK more in bid to fill social care funding black hole

BORIS Johnson today broke a key election promise by hitting millions with a double-whammy tax bombshell to fix Britain’s social care crisis.

The PM finally revealed his highly-controversial plan to raise National Insurance by 1.25 per cent to cap the spiralling costs of elderly care.

3

3

Pensioners will still have to pay a maximum £86,000 over their life – and then the Government will cover the rest of the bill .

Mr Johnson said this will stop the nightmare of cash-strapped pensioners forced to sell their houses to foot the eye-watering costs.

But he is facing boiling rage for hitting the wallets of poorer workers while wealthy retired pensioners aren’t chipping in.

A double-whammy tax could see people pay up to £7.50 a WEEK more.

In core developments:

• Over-65s still in work will also have to pay the 1.25 per cent uplift
• Shareholder profits will be taxed to help swell the NHS budget
• Cabinet agreed to the PM’s radical overhaul at an in-person meeting today
• Ministers were also poised to rip up the pensions triple lock

HEALTH OF THE NATION

Outlining the double tax in the Commons, Mr Johnson said: “It will be irresponsible to meet the costs from higher borrowing and higher debt.

“So from next April we will create a new UK wide 1.25 per cent health and social care levy on earned income, hypothecated in law to health and social care with dividend rates increasing by the same amount.”

The 1.25 per cent rise in National Insurance will kick in for employers and employees from April 20 next year.

Someone on a £25,000 salary will stump up an extra £193 a year. Someone on £50,000 will pay an extra £506 a year. Someone on £75,000 will pay £818 more a year.

From April 2023 National Insurance will revert to their current rate – and the 1.25 per cent will appear as a standalone “health and social care levy” on people’s balance sheets.

The money raised will fund a £36billion health package over three years.

It will initially be used to tackle the enormous NHS backlog caused by axed appointments during lockdown.

But from October 2023 it will help fund the costs of social care by setting a cap on how much pensioners will be forced to pay.

Anyone with assets between £20,000 and £100,000 will receive help from the Government, which will be means tested.

CARE COST CAP

Nobody will ever pay more than £86,000 for social care costs over their lifetime. Anyone earning under £20,000 will not pay anything.

Currently anyone with assets over £23,000 has to foot the entire cost of their care, such as nursing homes or visits that spiral into the tens of thousands.

The PM’s official spokesman said this will end the “unpredictable and catastrophic care costs” that drains life savings.

Tory MPs fear a backlash from voters because the tax hike rips up a 2019 manifesto pledge.

Downing St insists this is a “once in a lifetime global pandemic which no one predicted and it’s right we take the necessary action to address this.”

This post first appeared on thesun.co.uk