Tag Archives: national insurance contributions

9 January 2025 – today’s press releases

  • Food prices set to rise: news will be hammer blow for millions already choosing between heating and eating
  • NHS stats: winter “one of the most brutal on record” as Lib Dems call on Streeting to bring forward emergency plan to protect patients
  • ‘Bed blocking’ has already cost NHS £165 million this winter as Davey calls on govt to finish social care review this year
  • Market turmoil: Chancellor should cancel China trip for emergency growth statement
  • Oxford Farming Conference: Reed’s “regret” not good enough – Starmer must reverse family farm tax
  • More than 440,000 police officer and staff days lost to mental health since 2019

Food prices set to rise: news will be hammer blow for millions already choosing between heating and eating

Responding to the British Retail Consortium saying that food prices will rise by 4.2% in the latter half of this year as “retailers battle the £7 billion of increased costs in 2025 from the Budget”, Liberal Democrat Treasury spokesperson Daisy Cooper MP said:

This news will come as a hammer blow to families across the country. Millions of people are already having to choose between heating and eating and the prospect of even more pressure on stretched budgets will be incredibly worrying.

The new government is faced with the enormous challenge of cleaning up the Conservative Party’s economic vandalism, but their approach so far risks repeating more mistakes.

It’s now clear as day that the Chancellor’s misguided national insurance hike is only going to hammer household budgets further by forcing up prices. Ministers must recognise their error and scrap this tax hike immediately.

NHS stats: winter “one of the most brutal on record” as Lib Dems call on Streeting to bring forward emergency plan to protect patients

Responding to NHS England saying that this is the busiest year on record for emergency services, Liberal Democrat Health and Social Care spokesperson Helen Morgan MP said:

This winter threatens to be one of the most brutal on record. Patients are suffering through deadly delays and staff are already at breaking point.

There can be no overstating just dangerous this situation is after years of the previous Conservative government’s shameful neglect of our NHS.

It is of paramount importance that the new government grips this crisis urgently. That must start with the Health Secretary producing an emergency plan in the coming days to protect patients from this ongoing disaster.

‘Bed blocking’ has already cost NHS £165 million this winter as Davey calls on govt to finish social care review this year

  • This winter has already seen 417,220 bed days taken up by patients that were well enough to be discharged – costing the NHS £165 million or £4.8 million a day
  • 12,271 of England’s 103,277 hospital beds have been taken up by people who are fit to be discharged everyday this winter – the equivalent of just under one in eight
  • Lib Dem Leader Ed Davey has called on the government to complete its social care review by the end of the year to take pressure off hospitals

This winter has already seen 417,220 bed days taken up by patients that were fit enough to be discharged, the equivalent of 1 in 8, costing the NHS £165 million in just over a month research by the Liberal Democrats has revealed.

Posted in News, Press releases and Scotland | Also tagged , , , , , , , , and | 15 Comments

22 November 2024 – today’s press releases

  • Davey: NICs hit is creating a perfect storm for the care sector
  • Davey on Ofgem energy price rise: Freeze energy bills and reinstate Winter Fuel Payments
  • Chamberlain calls for energy bills to be frozen and Winter Fuel Payments to be reinstated after energy price rise

Davey: NICs hit is creating a perfect storm for the care sector

Analysis released by the Nuffield Trust today (Friday 22 Nov) has found that the changes to Employer’s NICs look set to cost the adult social care sector over £900m next year, more than wiping out the extra funds allocated to social care at the Budget. The analysis by Nuffield Trust also estimates that the 18,000 independent organisations providing adult social care in England will be faced with increased costs of an estimated £2.8bn in the next financial year, meaning many businesses – especially smaller ones – are at risk of going bust.

Responding, Liberal Democrat leader Ed Davey said:

These damning figures lay bare the devastating impact of the National Insurance hike on social care. The government must immediately do the right thing and exempt care providers from this ill-thought through tax hike.

This hit is creating a perfect storm for a care sector already damaged by the Conservative party’s neglect. Now there is a real danger small care providers will simply not survive.

Ultimately, it’s people in care who will suffer the consequences. The Chancellor must urgently act to help our social care sector before it’s too late.

Davey on Ofgem energy price rise: Freeze energy bills and reinstate Winter Fuel Payments

Liberal Democrat Leader Ed Davey has today called on the government to freeze energy bills so that Ofgem’s newly announced rise in the price cap will not go ahead.

He also called on the government to reinstate Winter Fuel Payments or risk pensioners being “left out in the cold” this winter.

Ofgem announced today that the energy price cap will rise by 1.2% to £1,738 a year in January, following the previous 10% rise in October. The Liberal Democrats are calling on the government to cancel this rise in energy bills so that households don’t face even higher energy costs in the new year.

Liberal Democrat Leader Ed Davey said:

Enough is enough. This further rise in energy prices cannot go ahead. As we enter another cold and difficult winter, many people simply can’t afford to see their heating bills go up yet again.

The disastrous government cuts to the Winter Fuel Payments coupled with this energy price rise will be a hammer blow for millions of vulnerable pensioners this winter.

The new government must step in now, cancel this bill rise and reinstate Winter Fuel Payments to stop families and pensioners being left out in the cold this winter.

This is a government that has pledged to bring down energy bills, it is time for them to live up to their word.

Posted in News, Press releases and Scotland | Also tagged , , and | 2 Comments

20 November 2024 – today’s press releases

  • Dentists left in the dark as government fails to assess impact of NICs hikes
  • Thames Water: we need to see an outright ban on exec bonuses whilst sewage scandal drags on
  • Cole-Hamilton attacks national insurance impact on GPs and care providers

Dentists left in the dark as government fails to assess impact of NICs hikes

The Liberal Democrats have revealed that the government made no assessment of its recent tax hike on NHS dentists.

Responding to a parliamentary question from the Liberal Democrats, Labour government minister Stephen Kinnock responded that “no assessments have been made yet on the potential impact of an increase in employers’ National Insurance Contributions on dental practices’ finances.”

The government announced at the budget that it would increase employers’ National Insurance Contributions (NICs) next year but has faced a backlash from health and care providers who will receive no extra support.

Whilst the government has confirmed that NHS hospitals and secondary care will be exempt, GPs, pharmacies, hospices and NHS dentists will not. This is putting financial pressure on these vital services and could force them to cut appointments and staff numbers.

The British Dental Association has slammed the move and the government’s failure to carry out an impact assessment, commenting that “it’s utterly reckless to heap new costs on struggling practices without even considering the impact.” NHS dentists across the country are warning that they will have to cut services for patients or even reduce staff numbers.

One practice in Tyneside has said that “it’s another nail in the coffin of NHS Dentistry.” Another practice warned “the recent changes to Employers NI and raising of the living wage will lead to bankruptcy and breakdowns.”

The Liberal Democrats are calling for the government to exempt NHS dentists and those providing vital health and care services, including GP surgeries, social care providers, hospices, charitable providers of health and care, and pharmacies, from this tax rise.

Liberal Democrat Health and Social Care spokesperson, Helen Morgan MP said:

The government has pulled the rug out from under crucial public health services without thinking twice.

It’s shocking that this careless decision has been taken with no regard to the impact it would have on NHS dentists. Many will have no choice but to cut services and staff numbers.

NHS dentists and other health and care providers must be exempted from the Chancellor’s tax increase. Without reversing the hike, the government’s plan to rescue our health service is a plan in name only.

Chair of the British Dental Association, Eddie Crouch said:

When millions can’t access NHS dentistry it’s utterly reckless to heap new costs on struggling practices without even considering the impact.

The Treasury failed to grasp that primary care is delivered by thousands of small businesses. Each requires immediate answers on how they’re expected to balance their books.

Thames Water: we need to see an outright ban on exec bonuses whilst sewage scandal drags on

Responding to reporting that the regulator Ofwat is expected to say on Thursday a £195,000 bonus awarded to the boss of Thames Water should not be paid for by customers, Liberal Democrat Environment spokesperson Tim Farron MP said:

The fact that Thames Water is paying out any bonuses in the first place is an utter disgrace.

It is a welcome shock that Ofwat is actually acting to protect bill paying customers for once after proving completely toothless in cracking down on these polluting firms for years.

Even when the regulator does act against this broken industry it does so in the meekest possible terms. A Chief Exec receiving hundreds of thousands of pounds in bonuses whilst the firm they run is on the brink of collapse is beggars belief.

We need to see an outright ban on water company bosses bonuses whilst this scandal drags on and Ofwat replaced by a new regulator with real teeth to crack down on this industry once and for all.

Posted in News, Press releases and Scotland | Also tagged , , , and | 2 Comments

31 October 2024 – today’s press releases

  • Ed Davey: Exempt social care from National Insurance tax hike
  • Budget: online gambling tax “a missed opportunity” for fairer NHS and care funding
  • Govt makes new commitment to create a ‘national cancer plan’ at Lib Dem led debate
  • Scot Lib Dems respond to government ditching pilot of juryless trials

Ed Davey: Exempt social care from National Insurance tax hike

Liberal Democrat Leader Ed Davey has called on the government to exempt social care from the employer’s National Insurance tax rise.

The Chancellor has provided extra funding for the NHS and other public sector organisations to cover the cost of the tax rise. However, the vast majority of care providers are private and so won’t benefit from this help.

98% of care providers – 18,000 organisations – are small employers. The Liberal Democrats have said care providers including care homes and those providing care in people’s homes should be exempt from the National Insurance tax hike.

Liberal Democrat Leader Ed Davey said:

Hammering small businesses with a tax hike is the wrong choice. It will hit people’s wages and jobs, but it also risks worsening the NHS crisis by hiking costs for care providers and pushing some to the brink.

It just shows that yet again the government seems to have forgotten about care. At the very least, the Chancellor should be exempting social care from this costly jobs tax.

Budget: online gambling tax “a missed opportunity” for fairer NHS and care funding

Liberal Democrat Leader Ed Davey is calling on the Government to double the tax on online gambling firms as a “much fairer” way to raise money for the NHS and social care.

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Reforming National Insurance Contributions

There has been much talk recently about how we are going to raise money to fund public services, and National Insurance Contributions (NIC) is usually the option the Treasury takes. This is predominantly because the public see NICs as something distinct from general taxation.

However, continually raising NICs hurts the income of working people, depresses wages and is generationally unfair.

NICs is only levied on those aged 65 and under, this explains to an extent why it is still seen as a contribution rather than a tax. However, with life expectancies rising and insufficient pension savings, people are working much longer. Raising …

Posted in News and Op-eds | 19 Comments

Hammond is right to break the Conservatives’ National Insurance pledge

Philip Hammond’s decision to raise National Insurance contributions (NICs) for self-employed people has been the most eye-catching and controversial aspect of the budget. No less captivating for a Liberal Democrat has been our party’s response. Lib Dems are understandably keen to hammer the Tories for breaking a manifesto promise. And MPs have been quick to paint themselves as the defenders of entrepreneurs and small business people (though patronising them as “White van man” is probably unwise).

For all that, the Chancellor’s policy is right – though it goes only a tiny way to treating all workers equally and fairly. Let us look first at the tax break and then deal with some objections.

  • Employees pay class 1 national insurance at 12% on earnings from £155 to £877 a week and 2% on earnings above that. The weekly sums are supposed to equate to £8,060 and £43,000 a year.
  • Employers also pay 13.8% on top of what the employee pays. Despite the myth that “employers pay” and that this comes out of profits, this is a tax on employed people’s wages. This is the biggest part of the injustice in the tax system and the chancellor has not touched it.
  • Self-employed people pay class 4 national insurance at 9% on profits between £8,060 and £43,000 and 2% on profits above £43,000.
  • Self-employed people also pay class 2 national insurance at a flat rate of £2.80 a week if they earn over £5,965 a year. So silly is this policy that George Osborne killed it (from April 2018). Interestingly, as part of that it was announced that class 4 national insurance would be increased to compensate, so there is some cover for Mr Hammond’s move.
  • Those incorporated as companies are able to take their income as dividends rather than salary, and so avoid NICs altogether.
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