Plaid Cymru MP criticises ‘regressive’ method of raising funds

Plaid Cymru’s Treasury spokesperson, Ben Lake MP, has today (Tuesday 7 September) criticised the UK Government for using Welsh taxpayers’ National Insurance contributions to fund social care in England.

Following the announcement that a National Insurance tax hike will be introduced to fund a new plan for social care in England, Mr Lake accused the Prime Minister of “pinching pounds from Welsh families who can least afford it, while protecting higher earners and the wealthy.”

Earlier in the House of Commons, Boris Johnson said that the UK Government would “direct money raised through the levy to [the devolved nations’] health and care services.”

The Ceredigion MP warned the UK Government not to infringe on the Welsh Government’s devolved powers, saying that “it is not for ministers in Westminster to direct policy in Wales on devolved matters”.

Ben Lake MP said:

“The UK Government’s decision to use National Insurance – a tax paid across the UK – means Welsh taxpayers will pay more but have no say over how their money is spent or on how much funding is allocated to the Welsh Government.

“This is a deeply unfair and regressive method of raising funds, disproportionately impacting young people, businesses and those on the lowest income. In effect, the Prime Minister is pinching pounds from Welsh families who can least afford it, while protecting higher earners and the wealthy.

“There is now an urgent need for the Welsh Government to solve the social care crisis. I would remind the Prime Minister, however, that it is not for ministers in Westminster to direct policy in Wales on devolved matters.”