Social care reforms could be paid for by National Insurance increase
Boris Johnson announces his plans today with reports of 1% NI increase
A rise in National Insurance could be announced today as Boris Johnson sets out his social care reforms.
It's being reported that the tax increase will help pay for the reform in England, a breach of a commitment made by Mr Johnson in the run up to the General Election.
The Prime Minister will set out in the Commons how he aims to tackle the social care crisis amid a growing Tory backlash over the reported plans to raise National Insurance.
NHS and social care challenges linked
As well as outlining measures to support the NHS in its recovery from Covid, Mr Johnson is expected to tell MPs that the challenges faced by the health service and the social care system are closely linked.
No 10 said a lack of integration between the two often sees people “stuck in the wrong care setting, and families worry about meeting the costs of care if they leave NHS provision”.
And Downing Street dubbed as “unfair and often catastrophic” the situation where someone who has dementia may have to pay for their care in full, while someone cared for by the NHS would receive care for free.
It said one in seven people now pays more than £100,000 for their care, and said the system can lead to “spiralling costs and the complete liquidation of someone’s assets”.
At the moment anyone with more than £23,350 pays for all their care
Under current arrangements, anyone with assets over £23,350 pays for their care in full, but No 10 said the costs were “catastrophic and often unpredictable”.
And Mr Johnson said: “We must act now to ensure the health and care system has the long term funding it needs to continue fighting Covid and start tackling the backlogs, and end the injustice of catastrophic costs for social care.
“My Government will not duck the tough decisions needed to get NHS patients the treatment they need and to fix our broken social care system.”
Reform plan set out today
Mr Johnson will reveal his plans to his Cabinet on Tuesday morning, before making a statement in Parliament later in the day.
Following that, the PM – along with Chancellor Rishi Sunak and Health Secretary Sajid Javid – will give a press conference on Tuesday afternoon.
Reports have suggested that lifetime contributions on care will be capped at about £80,000 and National Insurance will be increased by 1.25% to raise between £10 billion and £11 billion per year.
Ahead of the announcement, No 10 remained tight-lipped on the detail, but it has been reported that the proposals will be sold as a health and social care levy.