Tax hike means public sector pay rise won’t reach people’s pockets, say Lib Dems

The Liberal Democrats have accused the government of giving with one hand and snatching away with the other on public sector pay, given the national insurance tax hike and worsening cost of living crisis.

Previous analysis by the House of Commons Library commissioned by the Liberal Democrats estimates that those working in health and social care will be faced with a tax hit of over £900 million due to the Conservative government’s manifesto-breaking hike to national insurance.

The research shows a nurse or midwife on an average salary would see their tax bill rise by £310 next year, care home workers would pay around £140 more and ambulance staff would face a £420 increase. The average NHS worker across all staff groups will pay £315 more a year.

Liberal Democrat Treasury Spokesperson Christine Jardine said: “Our public sector workers have been on the frontline of the pandemic and deserve a fair pay rise. But under Conservative plans their incomes will be squeezed by tax hikes and the cost of living crisis, which risks wiping out this pay rise before it even reaches people’s pockets.

“Our NHS and care home heroes face a £900 million tax grab due to Boris Johnson’s broken promise on raising national insurance.

“It shows that on public sector pay, the Conservatives are giving with one hand and snatching away with the other.”