On 7 September 2021 the UK Government announced the biggest tax rise for generations.

Increasing national insurance contributions (that all workers pay) by 1.25%.

The increase is to pay for increase social care costs.

The rise is rubbish and to get the message across Simon and Alf discussed it.

Watch the video below: 

People never ask how much the #NHS pension bill is.


People never stop to think that the current National Insurance they pay, in turn, gets paid to the current claimants of the state pension.

People never stop to question the Local #Government Pension Schemes (just look up your local government pension scheme).

People never stop to question how all other Civil Servant type pensions are funded.

I.E . The #Judiciary, The #Police, The Health Care Sector, The #Teachers etc

The truth is only the Local Government Pension Schemes (that’s your local council) are funded – and many very generously so.

Most Council tax payments actually pay the current ‘ex council’ employees’ pensions.

The truth is all the other public sector pension schemes are unfunded.

Yes, many may now be on ‘career average’ but the bulk of public sector pensions in payment (and for at least the next 20 years) are very very generous inflation protected Defined Benefit pensions.

And THEY NEED TO BE PAID>

So, where do you get the money to pay those unfunded pensions?

You get it by increasing the National Insurance rate, that’s how as well as all the other stealth ways money is being grabbed.

Using the pandemic and an aging population and their ‘care’ needs is just a smokescreen for serious money that’s needed to pay current and ongoing pension liabilities.

In terms of Social Care? 

The truth is most ‘care home’ operators are simply ‘in it’ for the money and run care homes like a hotel business based on bed occupancy rates. They just look for the profit opportunity of charging 1000 – 1500 a week – for as long as they can get it.

It’s care BUT care at a hefty cost.

The consequence (or benefit if you’re on the right side of the coin) of capping care costs at 86K is that more funds can be inherited at point of death.

Therefore, the increase in National Insurance on all workers benefits the wealthier in society as there is more to inherit.

The next move will probably be a decrease in the ‘nil rate band’ for inheritance tax.

This is all wrong and the ‘so called’ social care could be paid by increasing Capital Gains Tax or increasing the 2% national insurance rate for higher income earners.

Currently, somebody earning 52K or 400K pays just 2% NI.

This is a highly disappointing move by this government.

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