Boris Johnson is expected to abandon the Conservative manifesto pledge not to raise income tax, VAT or National Insurance and has plans to raise the main rate of NI by 1pc or 1.25pc to ease the care crisis. Policy makers are reportedly at logger heads over the size of the rate increase, expected to hit some 30 million people.
National Insurance is charged at different rates on different bands of earnings. Self-employed workers are also treated differently.
The table below details how workers with various incomes would be affected. An employed worker earning £60,000 a year would pay £504 more a year in NI if the main rate increased from 12pc to 13pc, and the upper NI rate was raised from 2pc to 3pc. They would pay £630 more if it went up to 13.25pc and 3.25pc.
Higher earners will pay much more over their lifetimes. But I rather doubt that they’ll be offered higher thread count sheets, or Nescafe Gold instead of regular.
So what will these people, who are alreaday likely to have saved to pay for their own care anyway, get for their extra payments?