'We have served this country' Outrage over pensioners 'paying National Insurance'

Jonathan Reynolds discusses the potential rise of National Insurance

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As of today, the tax is paid at 12.5 percent of a worker’s income, with high earners paying only two percent on salaries above £50,000 and pensioners not having to pay National Insurance at all. Workers pay National Insurance contributions on their earnings with employers collecting and forwarding them to HMRC. By paying National Insurance, employees become entitled to certain benefits, including the new state pension.

Earlier this year, the tax threshold was raised from £8,632 to £9,500 a year, saving around 31million British workers £100 a year.

Despite this show of support for low-income workers, Mr Johnson is looking to hike National Insurance contributions as part of its social care plans following the revelation that waiting numbers for NHS treatment have jumped to 5.45million.

Next week, the Government is set to announce plans to increase National Insurance contributions for 25million workers across the UK to fund their healthcare ambitions.

According to The Telegraph, Mr Johnson is floating around the idea of raising payments by one percent next April to coincide with annual changes to the National Insurance threshold bands.

However, he is facing opposition from his Chancellor as Mr Sunak is reportedly pushing for a steeper 1.25 percent rise on National Insurance contributions.

READ MORE: State pension warning: Triple lock is a ‘ticking time bomb’

National Insurance pensioners

National Insurance: ‘We have served this country’ Outrage over pensioners ‘paying NI’ (Image: GETTY)

On top of this, the Government is facing a potential civil war within the Conservative Party as Mr Johnson will be breaking a key pledge which was included in his winning manifesto during the 2019 General Election.

Experts believe Mr Johnson and Mr Sunak’s proposed increase to National Insurance payments will disproportionately affect pensioners in the UK.

It is this issue which is proving controversial between members of the Tory party, as well as readers of Express.co.uk.

In reaction to our initial coverage of the impact the National Insurance hike could have on pensioners, many of our readers got in touch to voice their opinion on the hot button issue.


Below the story, one person wrote: “Pensioners have already paid tax and National Insurance when they worked until 65 and tax only after 65, but also again further tax on any personal pension received over tax free personal allowance.

“Pensioners as a whole already contribute one of the largest portions of tax of any members of society.any income over tax free allowance has effectively been taxed twice at 20 percent and 20 percent again as a minimum.

“Higher rate earners will have to pay 40 percent plus 20 percent.”

Another penned: “Do this at your peril! There are a thousand ways to reap in money, but taking it off the people that have served this country for over 50 years, people that have tried to give themselves their last few years without worrying how they are going to pay the bills.

National Insurance pensioners 2

National Insurance: Pensioners may be affected by NI changes (Image: GETTY)

“Granted there are people with gold plated pensions but 90 percent of them are civil servants and can afford to take a hit, but we can’t!

“Social care is for the people that put little or nothing into the country’s system, but there are exceptions, but not many.

“Do the right thing and think where are we giving our tax aid and help to.”

A third wrote: “Pensioners on their income like everyone else pay tax, pay National Insurance and contribute to the nation through their working life.

“If later health means a nursing home they pay £1200/1500 a week if they have a home or savings … whilst others have it as a freebie so don’t give me the bull middle class pensioners don’t pay their share.”

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National Insurance: NI payments go towards benefits, such as the state pension (Image: EXPRESS.CO.UK)

A fourth commented: “COVID costs have hit hard but this is not the way to go. £179 a week is not that much if they take National Insurance out of it.

“It will just push more pensioners into the poor area and then they will not pay council tax, rent if that also applies & maybe even end up getting some other benefit as well.

“This along with the costs of admin could well end up costing us more than it will bring in. Sorry Boris but this one is a bad idea.”

The Prime Minister is set to publicly outline his social care plans and reform to National Insurance later this week.

Roy Walsh

Roy Walsh

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