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

Published

3 years ago

September 7, 2021

admin

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

Mpox: More cases of new Clade 1b strain detected in UK

Published

7 hours ago

November 4, 2024

admin

Mpox: More cases of new Clade 1b strain detected in UK

More cases of a new strain of mpox have been detected in the UK, officials say.

Last week, the UK Health Security Agency (UKHSA) said a single case of the mpox virus variant Clade 1b had been confirmed in London.

The agency has now announced a further two cases have been detected.

The two patients are household contacts of the first and are currently under specialist care at Guy’s and St Thomas’ NHS Foundation Trust in London, it added.

“The risk to the UK population remains low,” the UKHSA said.

“There has been extensive planning under way to ensure healthcare professionals are equipped and prepared to respond to any further confirmed cases.”

The UKHSA’s chief medical adviser, Professor Susan Hopkins, said: “Mpox is very infectious in households with close contact and so it is not unexpected to see further cases within the same household.

“The overall risk to the UK population remains low. We are working with partners to make sure all contacts of the cases are identified and contacted to reduce the risk of further spread.”

The first case detected in London last week was a person who had been on holiday in Africa.

They developed flu-like symptoms more than 24 hours after returning to the UK and later developed a rash which worsened in the following days.

The agency said contacts of all three cases are being followed up on and would be offered testing and vaccination as needed.

What are the symptoms of mpox and how is it passed on?

Common symptoms of the disease include a skin rash or pus-filled lesions, which can last between two to four weeks. It can also cause fever, headaches, muscle aches, back pain, low energy and swollen lymph nodes.

Mpox, and the Clade 1b strain, is usually passed on by close physical contact, contact with infected animals, or sexual transmission.

The UK has a stock of mpox vaccines and last month announced more were being procured to support a routine immunisation programme.

UK

Valencia floods: British couple Don and Terry Turner found dead in their car after going missing

Published

10 hours ago

November 4, 2024

admin

Valencia floods: British couple Don and Terry Turner found dead in their car after going missing

A British couple have been found dead in Spain after being caught in the floods last week, their daughters have said.

At least 217 people have died after heavy rain in eastern Spain caused flash floods, with thousands of cars left wrecked in the streets and an unknown number still missing.

Ruth O’Loughlin and Renee Turner told Sky News their parents Don, 78, and 74-year-old Terry Turner, from Pedralba, about 20 miles (33km) west of central Valencia, went missing during the floods – only for their bodies to be found in their car days later.

An FCDO spokesperson said it is “supporting the family” and is “in contact with the local authorities”.

It comes as a red alert warning of “extreme danger” from torrential rain has been issued for Barcelona today, with 180mm of rain set to fall in 12 hours according to the national weather agency Aemet.

Speaking to Sky News, Ms O’Loughlin said she last spoke to her mother on Monday last week, and a day later saw her messages to Mr Turner were not delivering on WhatsApp.

After seeing reports of the floods, she tried to contact her father and again received no response, before her nephew rang on Thursday to say her parents were reported as missing.

Despite social media campaigning and calls to the British Consulate, Renee Turner said it was Saturday when they found out Mr and Mrs Turner had died.

“My sister and I both got a phone call to say that they’d been found in their car, and unfortunately they had died,” she said.

Ms O’Loughlin added: “We’d got told they’d nipped out for gas, as they do.

“Obviously, they weren’t aware of how bad the area was, and their friend said they were aware [the couple went out] as they used to talk all the time.

“And then they didn’t come home.”

Renee Turner insisted both Mr and Mrs Turner would have “without a doubt” heeded flood warnings, but told Sky News “there was no alert”.

“My parents would not have been out,” she added. “We are so angry at the slackness of the Spanish authorities in that respect.

“Not just our mum and dad [have died], there’s hundreds of people, hundreds, and they have to be held accountable for that.”

In their hometown of Burntwood, Staffordshire, Ms O’Loughlin said “everybody knows my mum and dad”. As kids, she recalled how people would come over when Ruth was baking.

She added that Mr Turner “was the clown – everyone loved Dad… he made our childhood absolutely wonderful,” before saying that when they moved to Spain, “everyone knew them there”.

Terry volunteered at a local dog rescue centre and adopted two kittens, Ms O’Loughlin said, which are currently being looked after by the couple’s friends in the area.

“We sort of knew [they were dead] because we knew that our mum would have done anything to get back to those pets,” Ms O’Loughlin added.

Both Renee Turner and Ms O’Loughlin had wanted to move their parents back to England, and the couple had been expected to return home permanently soon.

“We had plans,” Ms O’Loughlin said. “Mum was desperate to come back. She’s a shopper, she missed Morrisons.

“We were looking at maybe getting a bigger house and moving mum and dad in with us. We could keep our eye on them, we could make sure they were okay.

“The thought of that: My mum said to me that ‘that’s more than I could ever wish for’.”

Foreign Secretary David Lammy expressed the UK’s condolences on X, saying: “The UK government expresses its heartfelt condolences to those affected by the tragic floods across Spain – our thoughts are with those that have lost their lives, their families and all those affected. I have offered the UK’s full support to my friend @jmalbares.”

Meanwhile, the local government in Catalonia warned of “continuous and torrential” rain in two regions today, saying people should avoid travel and stay away from streams and ravines.

Authorities told those nearby the “extreme danger” warning issued for the Barcelona region: “Do not travel unless strictly necessary.”

Authorities have also suspended train services in northeast Catalonia on request from civil protection officials.

UK

University tuition fees to increase in England for first time in eight years

Published

10 hours ago

November 4, 2024

admin

University tuition fees to increase in England for first time in eight years

University tuition fees in England will increase for the first time in eight years, the education secretary has announced.

Fees have been frozen at an annual level of £9,250 since the 2017/18 academic year.

Education Secretary Bridget Phillipson said the maximum cap will now rise in line with inflation from April 2025.

That will increase the cost of tuition to £9,535 next year – a rise of £285.

Politics latest: Badenoch announcing shadow cabinet

Ms Phillipson also announced a rise in maximum maintenance loans so they will now increase in line with inflation, giving an increase of £414 a year to help students with living costs.

The education secretary tried to ward off any panic from students as she said: “I want to reassure students already at university when you start repaying your loan, you will not see higher monthly repayments as a result of these changes to fee and maintenance loans.

“That’s because student loans are not like consumer loans, monthly repayments depend on earnings, not simply the amount borrowed or interest rates – and the end of any long term, any outstanding loan balance, including interest built up, will be written off.”

She said the decision had not been easy but added: “It is no use keeping tuition fees down for future students if the universities are not there for them to attend, nor if students can’t afford to support themselves while they study.”

Sir Keir Starmer had pledged to abolish tuition fees when he stood to be Labour leader in 2020.

However, the prime minister rowed back on that promise early last year, saying it was no longer affordable because of the “different financial situation” the country was in, and he was choosing to prioritise the NHS.

He said Labour would set out a “fairer solution” for students if they won the election – which they did with a landslide in July.

The change comes as universities have been dealing with a funding crisis, largely driven by a huge drop in overseas students.

Rules brought in by Rishi Sunak’s government made it harder for international students, who pay higher fees than British ones, to bring their families with them to the UK.

Universities have been pleading for more investment, but Ms Phillipson said recently institutes should seek to manage their own budgets before hoping for a bailout from the taxpayer.

When she was in opposition, she also touted the idea of reducing the monthly repayments “for every single graduate” by changing how the loan is paid back.

Writing in The Times in June 2023, she said: “Reworking the present system gives scope for a month-on-month tax cut for graduates, putting money back in people’s pockets when they most need it.”

However, the idea did not make it into Labour’s 2024 manifesto, which only says that “the current higher education funding settlement does not work for the taxpayer, universities, staff, or students”.

It adds: “Labour will act to create a secure future for higher education and the opportunities it creates across the UK.”

Independent MP Zarah Sultana, who lost the Labour whip after rebelling over the two-child benefit cap, called the latest development “wrong”.

“It’s time to abolish tuition fees and cancel student debt because education is a public good, not a commodity,” she posted on X.

‘Maintenance loans bigger issue’

Money saving expert Martin Lewis earlier explained how higher fees will not necessarily lead to students facing higher yearly repayments, as that “solely depends on what you earn not on what you borrow”.

In a thread on X, he said a more damaging policy was the Tories’ decision last year to drop the salary threshold at which repayments must be made – from £27,000 to £25,000 – and increase the time to clear the loan before it is written off, from 30 to 40 years.

He said: “Increasing tuition fees will only see those who clear the loan in full over the 40yrs pay more. That is generally mid-high to higher earning university leavers only, so the cost of increasing them will generally be born by the more affluent.”

University fees of £1,000 per year were first introduced by the Labour government in 1998, going up to £3,000 in 2006.

The coalition government then tripled the amount to £9,000 in 2012, sparking a huge backlash, particularly against the Lib Dems who had vowed to scrap fees in the 2010 general election campaign.

Since then, there have been further changes to student finance such as the abolition of maintenance grants and NHS bursaries, moving student support increasingly away from non-repayable grants and towards loans.