PM announces 1.25% National Insurance hike to pay for social care

Published

3 years ago

September 7, 2021

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National Insurance contributions will rise by 1.25% to pay for the social care system in England in a bid to end the “unpredictable and catastrophic costs” faced by many.

A social care package, which the prime minister has called “the biggest catch-up programme” in the NHS’s history, will be funded through a new, UK-wide 1.25% ‘health and social care levy’ from April 2022.

The plan was signed off by ministers at a Cabinet meeting earlier after days of fury from Tory backbenchers.

The levy is expected to raise about £12bn which, in the early years, will mainly be used to fund dealing with the NHS backlog.

This includes £2.2 billion a year for Scotland, Wales and Northern Ireland, as tax changes affect the whole of the UK.

Announcing the plans in the Commons, Prime Minister Boris Johnson said the costs of the programme will be split between individuals and businesses and “those who earn more will pay more”.

From October 2023, anyone with assets under £20,000 have their care costs fully covered by the state, while those with between £20,000 and £100,000 will be expected to contribute to their costs but will also receive state support.

He added that there will be a cap of £86,000 on what people will be asked to pay over their lifetime for care.

The increase will be used exclusively on health and social care, and will raise £36 billion over the next three years, the PM said.

He told MPs the measures will cap COVID backlogs in hospitals by increasing hospital capacity “to 110% and enabling 9 million more appointments, scans and operations”.

“As a result, while waiting lists will get worse before they get better, the NHS will aim to be treating around 30% more elective patients by 2024-2025 than before COVID, the PM said.

Mr Johnson said he accepts that the measure breaks a Tory manifesto pledge not to hike national insurance, but that it was a necessary move due to COVID financial pressures.

“No Conservative government wants to raise taxes, I will be honest I accept this breaks a manifesto commitment. It is not something I do lightly but a global pandemic wasn’t iin anyone’s manifesto,” the PM told MPs in the Commons.

“This is the right the reasonable and the fair approach. I think the people of this country understand that in their bones and they can see the enormous steps that this government and the Treasury have taken.”

The PM’s official spokesperson said the change will make “the system fairer for all” and noted that working adults above pension age will also contribute to the new levy.

“The levy will be paid by working adults including those over the state pension age. From April 2022, while systems are being updates NICs rates will rise by 1.25%,” the spokesperson told reporters on Tuesday.

“Then, from April 2023, once systems are updated, the levy will be separated and the exact additional amount each employee is paying through the levy will be visible as a separate line on an individual’s payslip.

“It is at this point that working adults above pension age will contribute to the levy.

“Individuals will contribute according to their means and those who earn more will pay more.

“A typical basic rate tax payer earning £24,100 will contribute £180 – that’s £3.46 per week. A typical higher rate tax payer earning £67,100 – the top 15% of earners – will contribute £7.15.”

Referring directly to those who have opposed the national insurance hike and suggested income tax should be raised instead, the PM said this would not generate the same amount.

The PM also announced that there will be a 1.25% hike in the amount of tax that is paid on income from share dividends to help cover the costs of the social care package.

Labour leader Sir Keir Starmer asked if the PM’s new plan will still lead to people selling their homes to fund care.

“The blunt and uncomfortable truth is that under the prime minister’s plans the quality of care received will not improve – there is no plan for that, people will still go without the care that they need – there is no plan for that, unpaid family carers will still be pushed to breaking point – there is no plan for that, working-age adults with disabilities will have no more control under their lives – there is no plan for that, pay and conditions will not improve for care workers – there is no plan for that,” he told the Commons.

“Let me spell that out – a poorly-paid care worker will pay more tax for the care that they are providing without a penny more in their pay packet and without a secure contract.”

Labour’s deputy leader Angela Rayner tweeted: “This is not a plan to fix social care. Describing it as such is an insult to everyone who works in social care and everyone who relies on social care.”

UK

UK weather: Warning over flight delays as fog forces ‘air traffic restrictions’

Published

7 hours ago

December 28, 2024

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UK weather: Warning over flight delays as fog forces 'air traffic restrictions'

Flight delays are expected as the UK sees more heavy fog.

It comes after 20,000 people were affected by airport disruption on Thursday, according to travel journalist Simon Calder.

“Temporary air traffic restrictions have been put in place due to fog causing poor visibility. Some flights may be delayed throughout the day,” a spokesperson for Gatwick Airport said.

“London Gatwick apologises for any inconvenience. Passengers should contact their airline for further information,” they added.

At Gatwick 35 departures scheduled up to 11am are delayed and 26 flight arrivals are delayed up to the same time. Two flights are cancelled. At Heathrow 20 flight departures scheduled to leave before 11am are delayed. At Manchester airport 16 arrivals are delayed up to 11am.

Speaking to Anna Jones on Sky News Breakfast about the disruption yesterday Mr Calder said: “We had at London City Airport, at London Heathrow, the busiest in Britain, at London Gatwick, the second busiest, more than 40 cancellations in and out from each of those airports.”

The thick fog will continue on Saturday according to the Met Office, with some areas seeing visibility reduced to just 100 metres.

Get the weather forecast where you are

The worst of the fog is forecast to hit the South East and central England, while East Anglia and parts of South Wales will also be affected.

Forecasters have not issued any fog weather warnings yet but the Met Office said it will monitor the situation across the weekend.

Met Office meteorologist Liam Eslick said: “It’s that time of year when people are travelling around the country a lot and there are a lot of people on the roads.

“There is a lot of fog covering much of England, mainly the South East and central England, but the rest of the country is seeing quite a bit of thick fog too.

“It will be pretty murky on Saturday morning and there will still be fog patches that will take a little longer to clear.”

Meanwhile, there is a yellow warning in place for heavy rain in parts of Scotland for Monday and New Year’s Eve on Tuesday, leaving the start of 2025 “distinctly unsettled”.

Edinburgh’s Hogmanay celebrations could face “significant disruption” from rain, with organisers warning audiences to “prepare for all weather, wrap up warm and double-check with your travel operator for the latest updates.”

The yellow warning could see as much as 140mm (5.5in) of rain in places, as other parts of the UK will likely see rain, wind and possibly even snow later on next week.

The Met Office added that “more warnings are likely to be issued”.

At Heathrow, British Airways was forced to cancel a handful of flights due to fog on Friday, while others were delayed.

Flights at both Gatwick and Manchester Airport were disrupted, with delays of up to three hours at Gatwick, and some passengers were diverted to other airports.

“The diversions were absolutely extreme,” said Mr Calder. At Teesside Airport, flights were diverted to Newcastle, Aberdeen and even Dublin.

This could continue into the weekend if the misty weather persists.

A spokesperson for the UK’s main air traffic control provider Nats said it had implemented “temporary air traffic restrictions” at several airports on Friday due to the fog.

Can I get compensation if my flight is delayed?

If your flight is affected by the disruption, you won’t be able to get any cash back, according to Mr Calder, as “bad weather is beyond the airline’s control”.

“However, every airline that cancels a flight is obliged to find for its passengers an alternative flight as soon as possible,” he said.

While the fog likely won’t remain past the weekend, people should not hold out hope for sustained sunshine with wet and windy conditions expected for much of the country, the Met Office said.

UK

Kemi Badenoch needs to pick her battles – and decide how dirty she wants to get

Published

23 hours ago

December 27, 2024

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Kemi Badenoch needs to pick her battles - and decide how dirty she wants to get

Never wrestle with a pig. You get dirty. And besides, the pig likes it.

Looking at the festive ding-dong that’s broken out between Kemi Badenoch and Nigel Farage, you do wonder if the Tory leader should take on board this famous quote – because there was only ever going to be one winner from this spat.

The Reform UK leader has spent the thick end of three decades dragging his political opponents into fights that ultimately benefit his cause. This is no different.

What would have been a relatively low-key Christmas stunt has been elevated into literal front page news.

Reform UK insiders say that, in turn, is driving more people to the party and pushing up their member count further.

Part of this is down to news editors grabbing on to any bit of politics that’s around during the quiet period between Christmas and New Year.

Why Badenoch and her team didn’t clock this and hold back will likely bewilder some in her party.

An argument the Tories should have swerved

What’s more, the Tory leader is also currently on the back foot regarding her central accusation that the Reform membership number is fake.

Reform agreed to show Sky News details of their account on NationBuilder – a platform that manages memberships and donations for many political parties.

The number of active memberships in the account portal matched the figure on the ticker – with their website count growing in size shortly after the NationBuilder tally increased.

Sky News also conducted its own analysis on the ticker and found nothing suspicious as it stands (read the full analysis here).

Kemi Badenoch has said Reform changed the coding when people began to point out the alleged discrepancy, but has yet to provide any evidence to back this up.

Either way, this is still an argument the Tories should probably have swerved.

All politicians need to pick their battles

Yes, signed-up members mean more income for a party, but they don’t necessarily translate into wider electoral success. After all, Labour’s membership surged under Jeremy Corbyn, but he still lost two elections.

But that’s not to say both main parties shouldn’t be looking very closely in their rearview mirror at Reform.

The party’s reaction to this row shows a far more professional behind-the-scenes operation than the previous, more ramshackle incarnations of the Farage-led political machine.

Talk to long time allies of the Reform leader, and even they sound somewhat surprised by how slick their project has got.

They also point to electoral milestones on the horizon where the party’s results at the ballot box can be objectively tracked – beginning with May’s local elections next year and running through the Welsh Assembly vote in 2026.

There’ll be many more attempts by Nigel Farage to wrestle with his political opponents before then.

The task for the Tory and indeed Labour leaders is to pick their fights and judge how dirty they are prepared to get.

UK

Nigel Farage threatens legal action if Kemi Badenoch doesn’t apologise for saying membership ticker was ‘fake’

Published

1 day ago

December 27, 2024

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Nigel Farage threatens legal action if Kemi Badenoch doesn't apologise for saying membership ticker was 'fake'

Nigel Farage has threatened to take legal action against Tory leader Kemi Badenoch if she does not apologise for accusing him of publishing a “fake” ticker showing Reform UK’s membership increasing to overtake the Conservatives.

The Reform UK leader has reacted furiously to Ms Badenoch’s assertion that he was “manipulating [his] own supporters” with a ticker that is “coded to tick up automatically” after it showed the insurgent right-wing party had gone past 131,680 members – the number of eligible Conservative Party members in its leadership election in the autumn.

He is demanding an apology from Ms Badenoch for the “accusations of fraud and dishonesty” that he labelled “disgraceful”, and said he is “not going to take it lying down”.

Asked by Sky News in a call with journalists if he is going to sue the Tory leader for libel, Mr Farage said: “I’m going to take some action in the next couple of days. I’ve got to decide exactly what it is, but I’m certainly not going to take it lying down.”

“I think it’s an absolutely outrageous thing for her to have said,” he continued. “I know she’s got a very bad temper. I know she’s well known for lashing out at people, but I am not at all happy, and I’m going to take some action.”

He added that he will confirm within two days exactly what this action will be if she does not apologise for the “intemperate outburst”.

Analysis: Badenoch needs to pick her battles

Reform showed Sky News the coding used to link the ticker to the member count within their account on the platform NationBuilder. The demonstration provided strong evidence that the ticker was not automated. Scroll down for the full analysis.

A Tory source told Sky News: “Fake Farage is clearly rattled that his Boxing Day Publicity Stunt is facing serious questions over a fake clock and hundreds of ‘members’ seemingly joining in the middle of the night.

“Like most normal people around the UK, Kemi is enjoying Christmas with her family and looking forward to taking on the challenges of renewing the Conservative Party in the New Year.”

‘It’s a fake’

The row started after Reform UK said on Boxing Day that it officially had more members than the Conservative Party, which Mr Farage, party leader and MP for Clacton-on-Sea, hailed as a “historic moment”, describing his party as “the real opposition”.

Reform UK also shared a video of the membership tracker being projected on to the Conservative Party headquarters in London.

But Conservative leader Kemi Badenoch accused the party of issuing misleading figures: “Manipulating your own supporters at Xmas eh, Nigel?. It’s not real. It’s a fake… [the website has been] coded to tick up automatically.”

Posting on X, she added that the Tories had “gained thousands of new members since the leadership election”.

Reform UK hit back at Ms Badenoch, publishing a screenshot of an online register claiming to show “active memberships”.

Do Reform’s claims stack up?

Ben van der Merwe

Data journalist

@_bvdm

Some tickers are indeed “coded to tick up automatically”. This is often done when the data isn’t updated regularly and so, in the meantime, the counter is made to increase at realistic intervals.

Any ticker showing government debt, unemployment or global temperatures, for instance, is almost certainly going up at a regular, pre-programmed rate.

Sky News analysed Reform UK’s ticker to see if this was the case for their membership ticker.

Specifically, we looked at a video posted by Nigel Farage on X, which shows an uninterrupted view of the counter from 4pm on Christmas Day to 2pm on Boxing Day.

The chart above shows the number of new members added every 30 minutes during that 22-hour stretch.

What we can see is that it varies a lot – very few people join overnight, and there is a big surge from around 11am on Boxing Day.

This was around the time that it was first reported Reform UK had acquired more members than the Conservatives, which provided a burst of publicity to the party.

If the ticker was simply increasing automatically, we would expect a much flatter line.

Political parties in the UK aren’t required to reveal their membership numbers, much less provide data that can be independently verified.

However, Reform UK did show Sky News its account on Nation Builder, an independent platform widely used by political parties and campaigns to track and manage their memberships.

Sky News was able to verify that the number of memberships in Reform’s NationBuilder account matched the number presented on their on-site ticker.

The Conservative Party had 131,680 members as of the November leadership contest, while Labour had 366,604 members as of March 2024.

Reform UK chair Zia Yusuf also waded into the row, claiming that people whose memberships of the Tory party had lapsed voted in the autumn leadership election that saw Ms Badenoch elected to the role.

In a call with journalists earlier, he repeated the assertion, and after putting out a call on social media for people to contact him if they had voted in the leadership election but are no longer party members, he said he has received “just so many” that he has not yet been able to verify their claims.

Ms Badenoch and the Conservative Party have been contacted for comment.

Reform UK has said it will submit to an audit of its membership numbers by one of the “big four” accountancy firms if the Tories do the same.

Farage gets personal

Speaking to journalists earlier, Mr Farage was very critical of Ms Badenoch personally, saying her claim that their membership number ticker had been faked “reflects her personality”.

He labelled her “aggressive” and “liable to lashing out”, and said he thinks she wrote her tweet out of a “slight sense of anger”.

“She’s got to fully disprove this, and she’s going to find life a lot more difficult and bitterly regret putting this out on Boxing Day afternoon,” he added.