Open Letter to Nick Gibb MP on proposals to increase employee NI contributions to pay for Care
Dear Nick
You are as aware as anyone of the speculation about increases ahead for employees re their National Insurance contributions to help pay for social care. Typical are these article in The Standard The Mirror and The Independent etc
Two per cent tax increase mooted to pay for government’s social care reforms
Six million over-60s forced to raid state pension to pay for care costs
https://www.mirror.co.uk/money/six-million-over-60s-forced-24902286
Backlash at plans to hike National Insurance to pay for social care for elderly
https://www.independent.co.uk/news/uk/politics/social-care-national-insurance-nics-
May I draw to your attention via two articles I penned in The Bognor Regis Herald concerning what I believe is the iniquity of the Upper Earnings Limit which means that those earning above that limit pay a drastically-reduced NI employee rate on earnings above that level, originally 0%, then 1% (Blair era and beyond), now 2%. Employers also paid an extra 1% above UEL.
That put a bigger onus on the lower paid, and allowed, for example, someone on £1 m a year to pay, in effect 1.5%.
In 2010 I made an FoI to HMRC which is reproduced in one of my articles. It showed that the removal of the UEL would net the HMRC an additional £9 billion a year from employee contributions, the better-paid would bear their full share.
Such a let-out has been insupportable for years, if ever justified. But since 2010, it has cost the national around £120 BILLION, and so in all justice and fairness it cannot be further justified or sustained.
I know that many local people in your and my Constituency will want you to press for the abolition of the UEL as soon as practicable.
With good wishes
copied to Jeremy Hunt MP, The Prime Minister, The Chancellor of the Exchequer, The Leader of the Opposition, and Jeremy Corbyn MP
