PM’s national insurance rise plan criticised as tax on young workers to protect the homes of older people
Boris Johnson is coming under attack from senior members of his own party ahead of a possible announcement on social care this week.
The prime minister is expected to increase national insurance to help fund care reforms and clear backlogs in the NHS.
However ministers, MPs, government officials and business groups have told Sky News they are concerned about the plan – which would go against the party’s 2019 promise not to raise taxes.
Downing Street has not confirmed details of the announcement but a senior government source said the government “will not duck the tough but necessary decisions needed to get the NHS back on its feet”.
Concern about breaking a manifesto pledge stretches into the cabinet, with other members of the government worried about taxing younger workers to subsidise the care and protect the homes of older people.
“It doesn’t sit well with an across-the-board subsidy to help a few who have assets to protect,” said one minister.
The social care plans are likely to include a cap on costs designed to stop assets like property needing to be used in full to fund care fees.
But this has provoked concern among some MPs because of the possibility of those with high value homes benefitting the most.
Health Secretary Sajid Javid is reportedly among those pushing for the increase
“I’m very concerned about the fact we seem to be protecting the inheritances of those with means at the same time as stripping the £20 uplift [in universal credit],” said one newly-elected MP.
A senior Conservative said: “It seems like a tax on middle England… it does not seem very conservative”.
Former prime minister John Major told the FT Weekend Festival that the policy was regressive and should be done in a “straightforward and honest fashion” through taxation.
Trade union boss Frances O’Grady also criticised the proposal, saying it “wasn’t right” to hit young and low paid workers with a tax increase while “leaving the wealthy untouched”.
The TUC general secretary instead called for the government to increase capital gains tax – a levy on profits made when selling assets like property or shares.
Much of the criticism has stemmed from the fact that people over the state pension age do not pay national insurance.
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3 Sept: Government social care reform plan in final tweaks
The tax is also only paid on earnings, so wealthier individuals who live off rental income, savings or dividends don’t contribute.
Labour Treasury spokesperson Bridget Phillipson said: “Hitting low earners, young people and business is as short-sighted as this Conservative government’s management of our NHS.”
With national insurance also paid by employers, business groups have criticised the plan as well.
A spokesperson from the Confederation of British Industry told Sky News: “While social care reforms are overdue and welcome, business would urge government to explore all alternative funding options before enforcing what amounts to a tax on jobs which could derail the UK’s economic recovery.”
Downing Street said it was committed to bringing forward a plan for social care by the end of the year.
A senior government source said: “The NHS needs more money.
“By the time of the next election there could be 13 million people on waiting lists if we don’t act.
“No one should have to face lengthy waits for healthcare. We must do everything we can to properly equip to NHS to make sure everyone gets the treatment they need.”
Politics
Starmer and Zelenskyy discuss ending Russia’s ‘brutal war’ – as Putin says says he is open to bilateral talks on longer ceasefire
Sir Keir Starmer and Volodymyr Zelenskyy spoke about ending Russia’s “brutal war” on Ukraine in their latest phone call on Easter Monday, as Vladimir Putin said he was open to bilateral talks.
The prime minister and Ukrainian president spoke on Monday afternoon, when Sir Keir “reiterated his iron-clad support for Ukraine“.
A Downing Street spokesperson added that the prime minister “said that the UK supports Ukraine’s calls for Russia to commit to a full ceasefire and that now is the time for Putin to show he is serious about ending his brutal war”.
“They discussed the latest developments on the Coalition of the Willing, and looked forward to further progress towards a just and lasting peace,” the spokesperson added.
Mr Zelenskyy later said on social media that he had a “good and detailed conversation” with the prime minister, and added Ukrainian officials will be in London for talks on ending the war with Russia on Wednesday.
“We are ready to move forward as constructively as possible, just as we have done before, to achieve an unconditional ceasefire, followed by the establishment of a real and lasting peace,” he added.
The Ukrainian president added that the 30-hour Easter truce, which both Kyiv and Moscow accuse the other of violating, showed that Russia “are prolonging the war”.
It comes as Mr Putin proposed bilateral talks with Ukraine on a longer ceasefire, which would mark the first time Russia held such talks since a failed peace deal soon after the invasion in 2022.
Speaking to a state TV reporter, the Russian president said: “We always have a positive attitude towards a truce, which is why we came up with such an initiative (the Easter truce), especially since we are talking about the bright Easter days.”
When asked about Mr Zelenskyy’s calls to extend the 30-hour ceasefire into a 30-day pause on civilian targets, he added: “This is all a subject for careful study, perhaps even bilaterally. We do not rule this out.”
The Ukrainian president said on Sunday evening that the Russian army had “violated Putin’s ceasefire more than 2,000 times” during the day, and accused Russia of “failing” to “uphold its own promise of a ceasefire”.
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From Saturday: Why Putin offered an Easter truce?
It also comes after Donald Trump has said he hopes Russia and Ukraine “will make a deal this week,” after he and his secretary of state Marco Rubio warned that the US will walk away from efforts to broker a peace deal unless there are clear signs of progress soon.
The US president said on his Truth Social platform that both countries would “start to do big business” with the US after ending the war.
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Last month, Ukraine accepted Mr Trump’s proposal for a 30-day truce, but Mr Putin refused to back a full 30-day ceasefire, saying crucial issues of verification had not been sorted out.
He then said he would agree not to target Ukraine’s energy infrastructure. However, both sides have accused each other of breaking the moratorium on attacks on energy targets and at sea.
Paul Atkins has officially been sworn in as the 34th Chairman of the Securities and Exchange Commission.
The April 21 announcement comes nearly two weeks after Atkins’ position was confirmed by the US Senate in a 52-44 vote on April 9.
“I am honored by the trust and confidence President Trump and the Senate have placed in me to lead the SEC,” Atkins said in a statement.
“As I return to the SEC, I am pleased to join with my fellow Commissioners and the agency’s dedicated professionals to advance its mission to facilitate capital formation; maintain fair, orderly, and efficient markets; and protect investors.”
Atkins is widely expected to lead a more crypto-friendly SEC than former chair Gary Gensler under the Biden administration.
He previously served as an SEC commissioner between 2002 and 2008.
This is a developing story, and further information will be added as it becomes available.
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