National Insurance contributions will rise by 1.25% to pay for the social care system in England in a bid to end the "unpredictable and catastrophic costs" faced by many.
A social care package, which the prime minister has called "the biggest catch-up programme" in the NHS's history, will be funded through a new, UK-wide 1.25% 'health and social care levy' from April 2022.
The plan was signed off by ministers at a Cabinet meeting earlier after days of fury from Tory backbenchers.
The levy is expected to raise about £12bn which, in the early years, will mainly be used to fund dealing with the NHS backlog.
This includes £2.2 billion a year for Scotland, Wales and Northern Ireland, as tax changes affect the whole of the UK.
Announcing the plans in the Commons, Prime Minister Boris Johnson said the costs of the programme will be split between individuals and businesses and "those who earn more will pay more".
He added there will be a cap of £86,000 on what people will be asked to pay over their lifetime for care, and said anyone with assets worth less than £20,000 will not have to make any contribution from their savings or housing wealth.
The increase will be used exclusively on health and social care, and will raise £36 billion over the next three years, the PM told MPs.
Mr Johnson said he accepts that the measure breaks a Tory manifesto pledge not to hike national insurance, but that it was a necessary move due to COVID financial pressures.
The PM told MPs in the Commons:
"No Conservative government wants to raise taxes, I will be honest I accept this breaks a manifesto commitment. It is not something I do lightly but a global manifesto wasn't in anyone's manifesto.
"This is the right the reasonable and the fair approach."
Referring directly to those who have opposed the national insurance hike and suggested income tax should be raised instead, the PM said this would not generate the same amount.
(C) Sky News.
Royal Duke To Visit As Newport Minster Reopens
Isle Of Wight Council To Support 'No Mow May' 2024
English Coastal Path Complication Amid Osborne House Queen Victoria Collection Fears
Seaview Pub Picks Up National Award
Isle Of Wight Radio Child Of Wight Awards 2024 Nominations Now Open
Fire Service Issues Water Safety And Mud Rescue Advice For Isle Of Wight
New Online Cancer Support For Local Residents
Specialist Monitoring Equipment Now Installed At Leeson Road
West Wight Runner Jackie Follows PB Marathon Run With Eastenders Appearance
West Wight Pub Can Now Be Listed As 'Asset Of Community Value'
Royal Navy 'Bomb Squad' Called To Seaview Following Ordnance Alert
Automated Gates Arrive On Wightlink’s FastCat Foot Passenger Route
Help Keep Isle Of Wight Streets Neat – Bring Your Bin In
Two Passengers Injured Following Bus Crash In Ryde
Late Night Reports Of Collision Spark Extensive Land, Sea And Air Search
Islanders Taking On London Marathon Today For Local Charities
Four Men Arrested Following Rogue Trader Activities In East Cowes
Rugby Players Set To Scale Great Heights For Teddy
Drug Driving, Domestic Abuse And Stalking Among Arrests Made As Police Target Isle Of Wight Criminals
Work Begins On ‘Monumental’ Mural Project At Historic Columbine Building
