The new 1.25 percent health and social care levy on earned income will raise over 36 million pounds over the next three years with this money going straight to the reforms. The increase of National Insurance aims to share the cost between individuals and business, meaning everyone will have to contribute according to their means, including those above state pension age.
Commenting on today’s announcement Steven Cameron, Pensions Director at Aegon said: “After the devastating health impacts of the pandemic, it’s only right that Manifesto Commitments aside, the Government is raising taxes to improving shorter term funding for the NHS and providing long overdue extra funding for social care.
“The health effects of the pandemic have been particularly cruel to our most elderly which has shown just how important it is to have a high quality, properly funded care system.
“As we on average live longer, more of us can expect to need some form of social care in later life and the costs of providing quality care and dignity need shared fairly between the state and those needing care,…
