19th November 2009
Press Release Health Services to be helped by National Insurance increase
19th November 2009 Press Release
Health Services to be helped by National Insurance increase
The Island’s Health Service part of the Department of Health and Social Security is experiencing a substantial overspend in the current financial year. The financial position will further deteriorate from next April, when the Island’s share of VAT receipts will be cut by the UK Government.
It is vital that continued funding for Health Services is secured. It was therefore imperative that the Hon W.E. Teare MHK. Minister for Health and Social Security brought this matter to Tynwald.
On 17th November 2009 Tynwald approved a 1% increase in employee’s National Insurance contributions from April 2010, in order to provide an expected £7 million a year boost for the Health Services. As well as increasing employee’s contributions by 1%, the self-employed will also become liable for a 1% contribution of their annual profits above the NI upper profits limit.
Commenting on the issue, Member of the Department with responsibility for Social Security, Bill Henderson, M.H.K., said
“The Island has been fortunate enough to be able to stave off the increase in employees NI contributions introduced in the UK in April 2003. However, Government finances are such that there is now a critical need to introduce these measures at the earliest possible opportunity, in order to alleviate some of the serious, growing pressures on the Health Services budget.”
Mr Henderson went on to say
"This will mean that from next April a full-time employee with average earnings of £569 per week will have to pay an extra £4.59 per week in National Insurance.”
The Hon W.E. Teare MHK. Minister for Health and Social Security, said
“As well as increasing the financial contribution to Health Services through increased National Insurance contributions, the Department is also undertaking a thorough review of all its services, in order to identify where savings could reasonably be made. Notwithstanding the additional revenue that will be allocated to the Health Services as a result of this measure, it will be a very difficult task indeed for the Department to sustain the services it currently provides.”