UK: Johnson announces higher social security contributions

Status: 07.09.2021 9:05 p.m.

British Prime Minister Johnson has announced an increase in social security contributions. In doing so, the conservative government is breaking one of its election promises. Johnson apologizes with the unpredictable corona pandemic.

From April this year, the British are expected to pay higher social security contributions in order to flush more income into the state coffers for the health system. Prime Minister Boris Johnson had campaigned for himself in the fight for the office of head of government with exactly the opposite of promises.

Specifically, the tax for the National Insurance – the British social security – is to rise by 1.25 percent, Johnson announced in parliament. The contributions are paid by tax. According to calculations by the AP news agency, Brits with an annual income of around 21,000 pounds, the equivalent of around 24,400 euros, will have to pay 180 pounds more in taxes in the future. That corresponds to around 200 euros.

With the plus in social security contributions, Johnson’s government expects annual additional income of around 42 billion euros. The money is to be used to relieve the National Health Service NHS – against the background of increased costs in the corona pandemic and the backlog of treatments that were postponed during the pandemic.

Cover care costs with tax plus

With this, Johnson justified in the British Parliament the breach of his central election promise not to want to increase taxes for individuals: Nobody could have foreseen the corona pandemic.

The breach of his election promise was not easy for him, stressed Johnson in front of the MPs. However, the procedure is “responsible and necessary”. In this way, he is keeping another election promise, namely to tackle the rising care costs for the aging population. The problem had been dragged on for decades and now there should be no more hesitation or hesitation before reform.

So far, Brits who are dependent on care have to bear an unlimited share of the costs themselves. As the news agency AP reports, many residents would have to fall back on their savings or even sell property such as their house. According to figures from the British government, around one in seven Britons has to raise a total of more than 100,000 pounds (the equivalent of more than 116,000 euros) in order to be able to afford their own care. Local authorities pay the costs if those in need of care are financially unable to do so, but this in turn puts a strain on the public budget.

The government’s plan is that people will have to spend no more than £ 86,000 on welfare throughout their lifetimes – around 100,000 euros at the current rate. Anyone who owns less than 100,000 pounds should be supported by the state.

Criticism from Parliament

However, the draft still has to be approved by parliament – and Johnson received harsh criticism from its ranks. Opposition leader Keir Starmer accused the conservative government of having caused the problems itself through the austerity programs of the past ten years and of not going far enough with the reform that is now being sought. “He’s putting a plaster on a gaping wound his party has caused,” the Labor leader told the prime minister.

Johnson’s plans are also a cause for concern within his own party. Former party leader William Hague warned of the possible loss of confidence among voters if Johnson did not keep the promises made.

Source link