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The Next

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First episode dateMay 16, 2005
Final episode dateJune 28, 2005
Networks Munhwa Broadcasting Corporation
Languages Korean
GenresKorean Drama
Melodrama
First episode2005-05-16 00:00:00
Final episode2005-06-28 00:00:00
Cast Lee Jong‑Soo
Date of Reg.
Date of Upd.
ID2949362
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NI rise must be scrapped to help families - David Davis

Dec 3,2023 6:30 am

Senior Tory MP David Davis has urged the government to call off The Rise in National Insurance payments, arguing it will place too much pressure on households at a time of high inflation.

From April, employees, companies and the self-employed will pay 1. 25p more in the pound on earnings or profits to help fund the NHS and social care.

Mr Davis told The Bbc this would create a " disincentive to work".

But Education Secretary Nadhim Zahawi called The Rise The Right policy.

And Prime Minister Boris Johnson said: " We've got to make that investment in our NHS.

" What We Are telling people is that if you want to fund our fantastic NHS, you have to pay for it and this government is determined to do so. "

NI will go up from April but will revert to its current rate a year later, with a new Health and Social Care Levy - at the same rate of 1. 25% on earnings and profits - being Set Up instead.

The government says the increase - which has by Parliament and would require another vote to be reversed - is expected to raise £12bn a year.

The Money raised will go initially towards easing pressure on the NHS, with a proportion then being moved into social care system over The Next three years.

Inflation rose to 5. 4% in December, the highest rate for 30 years, and is expected to surge further, with electricity and gas bills set to go up substantially in April.

Mr Davis, a former Brexit Secretary, told BBC Radio 4 's Today programme the government's decision Last Year to raise NI And Then Set Up the Health and Social Care Levy had been based on " quite a lot of wrong data".

" They didn't know at The Time that by April we would have the highest inflation for 30 years, " he added.

" They didn't know that interest rates would be going up, that council tax would be going up, that fuel prices were about to rise by about £700 a year for an average family.

" Therefore They didn't know quite what pressure there would be on Ordinary People . "

Mr Davis said the forthcoming changes would Take Away about 10% of disposable income for " ordinary families" arguing: " It creates a disincentive to work, [and] for overtime and promotion. . a disincentive for employment.

" It's probably not going to raise anything like £12bn. It may even have a negative because it slows the growth of the economy, " he added.

Several Conservative MPs raised concerns over the introduction of the NI rise during parliamentary debates last autumn.

But Mr Zahawi, also speaking to the Today programme, said " successive governments have not dealt with" How To fund social care for an ageing population.

He added of the NI rise: " It is really important to remember that the highest earners, the 14% who earn The Most are paying 50% - They are paying half of that contribution.

" And the lowest earners, 6. 1 million of the lowest earners pay nothing, so it is as progressive as we can make it to deal with a problem that breaks many an individual in their Old Age .

" So it is really important to just Focus On why We Are doing this, why I think it is The Right thing to do, because it will finally create a system of adult social care that is sustainable and deliverable without breaking families. "

Pressed on suggestions The Move could " shock" the economy and prevent the tax rise from raising the predicted sums, Mr Zahawi replied: " I think the Treasury have done The Work on this and it is The Right thing to do. "



Source of news: bbc.com

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