Employees, businesses and the self-employed will pay an extra 1.25p in the pound.
Those of state pension age do not pay the tax at present, and nor do those on very low incomes.
They claim it will pay for the care cap and boost NHS capacity to help tackle the backlog in England - it is up to the rest of the UK to decide how they spend the proceeds. And that came after a decade of the budget rising by little more than 1% - an unprecedented squeeze for the health service.From now, employees will pay National Insurance contributions on earnings above £9,880 a year. From July, it will be paid on earnings above £12,570 a year.
Among those concerned about the bill is Hanna Gentry, an assistant general manager at George's Bistro in Cleckheaton."Personally for me if I look at my wage I think it's not too much, but as a business when you have to pay that on everybody's wages, it adds up really, really quickly," she said. However, Mr Hipkins said society had a "moral obligation and responsibility to this" to fund social care services, which he added have been "overlooked" for too long.
The Labour Leader Keir Starmer has condemned the NI rise saying that the UK now has the highest rate of taxation in 70 years.
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