National Insurance is to be increased across the board to pay for social care reform. An announcement is expected as soon as next week when parliament returns from its summer recess as the huge NHS backlog caused by the pandemic reaches new levels.
NHS representatives have said that a boost of anything less than £10 billion per year will result in a fall in the quality of hospital care and waiting lists becoming unmanageable.
Without a significant rise, waiting lists for hospital treatment could rise by 150,000 per month.
The intervention is intended to put pressure on Downing Street, the Treasury and the Department of Health and Social Care, where ministers and officials are finalising how much money the NHS will be given over the next three years.
Boris Johnson has broken a key 2019 manifesto pledge stating there would be no increase to the rate of income tax, VAT, or national insurance within five years of the Government forming by reportedly committing to the hike.
READ MORE: NI tax rise could get WORSE – PM pushed for even bigger crippling hike
For those in the lower band, an increase to 13 percent is coming if Mr Sunak gets his way.
But if Mr Javid makes the call, an increase to 14 percent of salary will be taken from the lower band.
For example, an employee on a £40,000 salary would pay £380 more than they do now if the rate is increased by the higher amount.
But Justice Secretary Robert Buckland insisted no decisions had been made and stressed the need for reforms to be “resilient for the long-term”.
He said: “This isn’t just a change for a Parliament, this has got be a generational change.
“We know the challenge, the work is going on and I’m sure that we’ll hear the outcomes very soon.
“No final decisions have been made.”
“We will work as quickly as possible in order to get that certainty that I think so many people have been looking for for so long.”
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