MPs vote for rise in NI to help fund health and social care

09 September 2021
1 min read
Published:

MPS have voted 319 to 248 for a 1.25 percentage point rise in National Insurance for workers and employers to help fund health and social care, the BBC has reported.

Despite an increase in tax breaking a Conservative manifesto pledge, Boris Johnson hopes the ‘health and social care levy’ will raise £12bn a year.

Sky News has clarified that, “Under the government's plans, the NHS will get the majority of the £36bn raised in the first three years, with £5.4bn for social care in England.” They also reported that “Scotland, Wales and Northern Ireland will receive an additional £2.2bn in health and social care spending from the tax rise.”

Michael Copeland at Wesleyan Group, a specialist financial services mutual for dentists, said on the matter, “It is hugely welcome to see extra money being made available to those in the NHS and social care sector – individuals who have worked tirelessly in extremely challenging conditions to provide vital services.

“Any rise in tax puts pressure on people’s finances, and whether paying dividend tax or National Insurance, everyone will see a rise by 1.25 per cent. Over the past few years we have seen a substantial increase in dentists moving to an incorporated business. Some might face hard choices in how they allocate and spend their hard-earned funds. Further challenges arise as people look for ways to continue saving for emergencies and bolstering their retirement plans. Seeking advice and support on how to balance these factors will be key.

“The new lifetime cap on care costs will also help individuals better anticipate, and ultimately prepare for, the costs of any care they might need in the future. For too long, this has been an open-ended system, creating anxiety and uncertainty in the financial planning process. Yesterday’s announcement creates a platform that we expect will prompt and facilitate vital discussions around long-term care needs.”

Meanwhile, in response to the announcement, the British Dental Association has said they are “urgently seeking clarity on what this will mean for dentistry.” They also reiterated that “England remains the only UK nation not to commit to capital funding to improve ventilation in practices to increase patient numbers.”