Tax and Fiscal Policy

Increasing National Insurance to fund social care unfair on young workers

Prof. Len Shackleton quoted in City AM

The government has reportedly reached an agreement to fund social care with a 1 per cent increase in National Insurance Contributions (NIC). The increase is expected to raise £10bn a year to fund social care, with both employers and employees seeing their tax burden increase.

Responding to the policy in City AM, IEA Editorial & Research Fellow, Prof. Len Shackleton, condemned the NIC increase, saying: “Hiking National Insurance will be yet another burden on working age people at a time when jobs are insecure, inflation is rising and wages are squeezed.

Read the full article here.