Tax and Fiscal Policy

NI tax hike for social care is a sticking plaster


In the Media

Victoria Hewson quoted in City AM

Mark Littlewood writes for The Times

In his bi-weekly column for The Times, IEA Director General, Mark Littlewood, argued that the government’s plan to raise National Insurance Contributions to fund social care is a ‘state Ponzi scheme’  which will divert funds raised by the new levy to day-to-day NHS spending, not fixing the care crisis.

Mark said: “Cracking the social care problem is not straightforward, especially once political and electoral considerations intervene. This government’s plans to do so are not a serious solution. Indeed, given that the fund is also to be used to ease crises in the NHS and that the NHS is almost permanently in crisis, it is doubtful how much of the revenue will end up paying for social care at all. It won’t be long before this administration — or its successor — has to go back to the drawing board.“.

Read the full article here.