Prime minister Boris Johnson has announced plans for a rise in National Insurance to fund social care.
The UK-wide 1.25 percentage point rise in National Insurance will generate £12billion extra per year in tax. The government says this will be used to cut backlogs in the NHS and overhaul the way social care is funded.
Mr Johnson said the cash would be used to ensure that from October 2023 no one starting care in England will be forced to spend more than £86,000 over their lifetime.
From that date 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.
The prime minister told MPs this would protect people from the “catastrophic fear of losing everything”.
Here's what that means for your pocket:
For someone earning the UK average of around £30,000 per year, the increased National Insurance contribution will equate to roughly £5 per week.
While for someone earning £100,000 will contribute just over £20 extra per week.
People not earning more than £10,000 per year do not pay National Insurance. Neither do people not in work.
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