Earlier this week Richard closed the debate on the second reading of the Social Care Levy (Repeal) Bill which puts more back into the pockets of workers across the country. This mean that fanilies and businesses will see their national insurance contributions reduced by 1.25 per cent.
Nationally, 28 million workers will be paying less in National Insurance Contributions thanks to the cut.
By April 2023, this cut will save the typical worker £330 per year, with an immediate saving of £135 this year. The Deputy Prime Minister and Secretary of State for Health and Social Care, Thérèse Coffey, confirmed that this reversal would not impact the NHS budget. The Government will maintain the £39 billion funding uplift, helping to cut the Covid-19 backlogs, deliver more doctors’ appointments, and fix social care.
These measures build on the government’s further tax cuts – including cutting stamp duty permanently by doubling the nil-rate band to £250,000 (from £125,000), increasing the nil-rate band for first time buyers to £425,000 (from £300,000) and increasing the value of the property which first-time buyers can claim relief to £625,000 from (£500,000). This is in addition reducing the basic rate of income tax by one per cent – delivering a tax cut for 31 million workers.
Economic Secretary to the Treasury, Richard Fuller MP said:
The measures contained in the Bill will put more money into the pockets of millions of workers allowing them, rather than the government, to decide how best to spend their hard-earned money. It will also allow companies to invest more in their businesses, helping to drive growth and create more well-paid jobs.
Crucially, the funding for Social Care that this levy was originally introduced to fund will be maintained under the government's spending plans and not affected by this repeal.
You can watch Richard closing the debate here.
