The vast majority of workers will pay more tax from April next year.
The government has branded the 1.25% increase in national insurance as a “health and social care levy”.
It will raise £12 billion which will initially mostly be spent on the NHS, but then be diverted to pay for the reformed social care system.
Labour said the plan was a sticking plaster on a gaping wound that the government itself had inflicted – and accused Boris Johnson of putting the primary burden on working people and struggling businesses.