Social care: who benefits and who shoulders the tax burden

Impact of tax and spending decisions on households in 2022-23. Cash terms, £ per year

Overall gain/loss

Benefit from extra £13.3bn

on health and social care

Loss from 1.25% increase in

national insurance contributions

Loss from 1.25% rise in dividend tax rates

£500

250

£0

-250

Households across the income spectrum will benefit from extra spending

-500

-750

Higher income households most impacted by rise in NICs and dividend tax

-1,000

-1,250

Bottom

decile

2

3

4

5

6

7

8

9

Top

decile

Overall

gain/loss

Benefit from extra £13.3bn

on health and social care

Loss from 1.25% increase in

national insurance contributions

Loss from 1.25% rise

in dividend tax rates

£500

250

£0

-250

-500

Households across the income spectrum will benefit from extra spending

Higher income households most impacted by rise in NICs and dividend tax

-750

-1,000

-1,250

Bottom

decile

2

3

4

5

6

7

8

9

Top

decile