The proposal to scrap the National Insurance contribution, costing an estimated £48 billion annually, has sparked a significant debate across the UK. Critics, including MPs and financial experts, argue that the government lacks a clear plan to finance this move, with concerns about the absence of an Office for Budget Responsibility (OBR) forecast. Prime Minister Rishi Sunak defended the proposal, emphasizing his vision for a 'fairer, simpler tax system' and addressing the issue of 'double taxation' for working individuals. However, skeptics question the impact on the National Health Service (NHS) and welfare benefits, suggesting that the abolition could lead to alternative forms of taxation and potentially harm vulnerable groups, particularly one 'worst-hit' age group. Financial commentator Martin Lewis weighed in on the discussion, outlining potential benefits and drawbacks, but specifics on who would be most affected remain unclear.
Martin Lewis explains how abolishing National Insurance would work - and who'd be better off https://t.co/lz4VJAjuo9
Labour's £46bn figure refers to axing employee National Insurance without replacing it. Conservatives haven't actually said they will do that. But by dropping strong hints about axing NI without giving details, they make it easy for others to fill in the blanks https://t.co/3abmb81rks
Why would Tories want to abolish National Insurance? Because it funds the NHS? Because it funds the unemployed, disabled, pensions? It is the core of the welfare state. And if it’s scrapped why would employers contribute to it? Explainer by @hilaryosborne https://t.co/QMNk8pxSi5
Does anyone believe if the Tories ever did scrap £46bn of National Insurance they’d preserve any of what it pays for? Nope. They’d find another way of taxing working people to the hilt and take away the safety net. https://t.co/dXSB7m5yOT
National Insurance being abolished would leave one age group 'worst-hit' https://t.co/kEyYj8lf0S
'I believe in a fairer, simpler tax system' PM @RishiSunak says he wants to scrap National Insurance because it's 'not fair that people in work face a double taxation' by paying National Insurance and income tax https://t.co/Lcy9D5lUYC
Scrapping the National Insurance contribution altogether will cost £48 billion a year. The Government has no OBR forecast for it and no plan to pay for it. https://t.co/EpZ1rEiaf4
Scrapping the National Insurance contribution altogether will cost £48bn a year. The Government has no OBR forcast for it and no plan to pay for it. https://t.co/PnxcSGp8Qq