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The government needs extra cash to fund investment in health and social care in the UK and has decided on the introduction of a Health & Social Care Levy.
We are also assured that the levy will be ring fenced and used solely for costs of providing health and social care.
Who is going to pay the levy?
In a word - the UK worker and his (or her) employer.
The increase will apply to:
The rates for classes 2/3 NIC will remain unchanged.
So what will the rates be?
Is that all?
No, there are a couple of extras:
In the overall…
This is a tax which overwhelmingly will be borne by workers with very little coming from pensioners. It continues a trend seen over many decades of the burden of tax being shifted towards earnings.
On the positive side the government plans to introduce an £86,000 cap on the amount anyone in England will need to spend on their personal care over their lifetime. Further, from October 2023 anyone with assets of less than £20,000 will not have to make any contribution for their care from their savings or the value of their home. Anyone with assets of between £20,000 and £100,000 will be eligible for some means-tested support. People whose assets are over £100,000 must pay full fees.
Perhaps this is one small step in the right direction?
