Working pensioners will have to pay new tax in UK

Boris Johnson triggers emergency Cabinet meeting over Covid fears. Image:

Under Boris Johnson’s new plans to fix the UK social care crises, working pensioners will have to pay a new tax.

Boris Johnson’s new plans to fix the UK social care crisis will see working pensioners over the age of 66 paying the 1.25 per cent tax levy to fund the spiralling costs of the elderly care system due to a Covid backlog.

Speaking to MPs today, Johnson said: “Our new levy will share the cost between individuals and businesses, and everyone will contribute according to their needs, including those above state pension age.”

As of April 2023, National Insurance will revert to their current rate – and the 1.25 per cent will appear as a standalone “health and social care levy” on paychecks.

The money raised will fund a £36billion health package over three years, Downing Street insisted this is a “once in a lifetime global pandemic which no one predicted and it’s right we take the necessary action to address this.”

From October 2023, the money will help to fund social care costs by putting a cap on how much pensioners will have to pay.

Those with assets between £20,000 and £100,000 will have help from the Government. This will be means-tested.

Nobody will ever pay more than £86,000 for social care costs during their lifetime.

Those who have savings of less than £20,000 will not pay anything.

The PM’s official spokesman said this will end the “unpredictable and catastrophic care costs” that depletes life savings.

Tory MPs fear a backlash from voters because the tax hike goes against a 2019 manifesto pledge.

Thank you for reading, and don’t forget to check The Euro Weekly News for all your up-to-date local and international news stories.

FacebookTwitterRedditWhatsAppTelegramLinkedInEmailCopy Link
Go Back
Written by

Laura Kemp

Originally from UK, Laura is based in Axarquia and is a writer for the Euro Weekly News covering news and features. Got a news story you want to share? Then get in touch at [email protected]