Scotland, Wales and Northern Ireland will receive 15% more in extra social care funding – £300MILLION – than they pay in under Boris Johnson’s National Insurance hike as the PM hails the ‘massive Union dividend’
- Boris Johnson today announced National Insurance hike to pay for social care
- PM said change will see Scotland, Wales and Northern Ireland get £2.2bn extra
- That is approximately 15 per cent – £300million – more than they will pay in
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The Prime Minister said his plans to overhaul the social care system will provide the three countries with an additional £2.2billion a year.
That will be approximately £300million more than their citizens will contribute under the new Health and Social Care levy in what Mr Johnson described as a ‘massive Union dividend’.
The extra money for the devolved nations is likely to spark a backlash from Tory MPs over why English taxpayers are effectively subsiding the care systems of other countries.
Scotland, Wales and Northern Ireland will receive 15 per cent more in social care funding than they will pay in under Boris Johnson’s proposals to hike National Insurance
Announcing his plans to shake-up social care and boost funding for the NHS, Mr Johnson told MPs: ‘While Scotland, Wales and Northern Ireland have their own system, we will direct money raised through the levy to their health and social care services.
‘So, in total, Scotland, Wales, and Northern Ireland will benefit from an extra £2.2 billion a year, and as this is about 15% more than they would contribute through the levy, it will create a union dividend of £300 million.’
It is thought the extra money will be legally ringfenced to ensure the devolved administrations can only spend it on health and social care.
The SNP blasted the announcement as the party claimed people in Scotland will effectively be taxed twice to pay for social care.
Ian Blackford, the SNP leader in Westminster, said: ‘The unfairness of this tax hike will be especially felt in Scotland.
‘The Scottish Government is responsible for social care and already funds provision from existing budgets and tax receipts, including SNP policies such as free personal and nursing care, we have done it.
‘As the Prime Minister well knows, by raising this levy across the UK, the Tories are taxing Scottish workers twice and forcing them to pay the bill for social care in England as well as at home in Scotland.
‘This is the Prime Minister’s poll tax on Scottish workers, to pay for the English social care.’
Mr Johnson hit back and said: ‘The NHS is a UK institution and we are all proud of it and we are proud of what NHS Scotland does as well.
‘You are completely wrong in what you said about those who pay this tax, the burden falls most heavily on those who have the broadest shoulders, as it should and it is the richest 14 per cent who pay at least half the taxation.
Ian Blackford, the SNP leader in Westminster, slammed the tax rise as he said ‘the Tories are taxing Scottish workers twice’
‘As I have just explained, there is a massive Union dividend of £300million across the whole of the United Kingdom and the whole of the UK will find more money for health and social care and that I think is what the people of Scotland will understand.’
The devolved nations will receive more in extra funding than they pay in because of the Barnett Formula.
The formula is the system used by the UK Government to determine how much funding should be given to the other home nations when it decides to spend more or less on public services in England.
Tory MPs have long called for the formula to be replaced because England often ends up receiving less per head for public services than its neighbours.
For example, Scotland started with higher spending per head when the formula was first used which means that discrepancy is baked into the system.
House of Commons Library figures for 2019/20 showed public spending per person in Scotland was 17 per cent higher than the UK average.