Impact of “Building Back Better: Our Plan for Health and Social Care” on households
Illustrative analysis of the impact of the combined tax and spending announcements set out in “Building Back Better: Our Plan for Health and Social Care” on household incomes.
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This document shows the immediate, short-run change in income as a result of increases in employee National Insurance Contributions (NICs) and dividends, alongside an estimate of where benefits from new health and social care spending may fall. It concludes that, subject to the assumptions used in this modelling, in 2022-23:
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Lower-income households will be large net beneficiaries from this package, with the poorest households gaining most (as a proportion of income).
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The 20% highest-income households will contribute more than 40 times that of the 20% lowest-income households.