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The Equality Trust shares concerns on the Government’s proposed increase to National Insurance Contributions

There are growing concerns about the Government reportedly considering an increase to National Insurance contributions to fund the UK’s struggling health and social care systems. 

The pandemic has exacerbated and highlighted the insufficient funding of social care and the impact on the NHS. However, this funding crisis predates the pandemic. While the Government’s commitment to reforming the health and social care system is welcomed, a hike in National Insurance contributions would be an extremely regressive move, hitting the youngest and lowest paid hardest. There are alternative methods to fund the NHS. 

To ensure the UK ‘builds back better’ the Government could consider alternatives, such as a wealth tax, an increase on taxation of upper earnings, to 50% and a reform of capital gains tax and inheritance tax.

Dr Wanda Wyporska, Executive Director at The Equality Trust, said:

“We have seen young people and those on low incomes across the country hit hardest by the pandemic. They  bore the brunt of unemployment, impacts on their mental health and disruption to learning. The increase to National Insurance contributions will leave young people and the lowest paid subsidising wealthier patients, allowing them to keep their wealth and then pass it on to their own children while exacerbating inequality. The funding strain on the NHS is not new; there have been calls for sufficient funding of the NHS for years, this burden should not be left to the young or those on the lowest incomes to fund.”

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  1. For interviews or further comment please email jo.wittams@equalitytrust.org.uk 
  2. The Equality Trust is the national charity that campaigns to improve quality of life in the UK by reducing economic and social inequality. The UK is one of the most unequal countries in the developed world and evidence shows that in countries with higher levels of inequality, we see higher rates of mental and physical ill health, higher rates of imprisonment and violent crime, worse educational outcomes and lower levels of trust. Inequality is not inevitable.