Analysis: both employers and employees pay NI but the burden weighs heaviest again on younger workers
After months of havering, the government is poised to make two big announcements in the coming weeks. Both break manifesto pledges, both are fraught with political danger.
First, perhaps as early as next week, comes the long-awaited plan for social care, expected to be funded by an increase in national insurance contributions. That breaks the pledge made in 2019 not to raise income tax, VAT or NI. Then, in the next month or so there is likely to be an announcement that the state pension will not rise in line with the expected 8% rise in earnings this year. That breaks the pension triple lock: an annual uprate of 2.5%, annual inflation or earnings depending on which is the highest.