Boris Johnson has announced a UK-wide “health and social care levy” to support reforms of the care sector and NHS funding in England. The new scheme will start as a 1.25% rise in National Insurance from April 2022. However, then become a separate tax on earned income from April 2023.
The plan was today signed off by ministers at a cabinet meeting, despite earlier disputes from Tory MPs.
The PM has said the aim is to raise a total of £36 billion over the next few years for frontline services, making it “the biggest catch-up programme in the NHS’ history”. At roughly £12 billion a year, the rise is anticipated to help clear the NHS backlog caused by COVID-19 and increase hospital capacity. It could see the NHS providing 9 million more appointments, scans, operations and the ability to help 30% more elective patients than before the pandemic.
The money will also go towards needed changes to the social care system, with a cap introduced on care costs from October 2023 of £86,000 over a person’s lifetime.
People with assets worth less than £20,000 will have their care fully covered by the state, and those who have between £20,000 and £100,000 in assets will see their care costs subsidised.
As Scotland, Wales and Northern Ireland have separate arrangements, the tax will be focusing on funding health and social care in England. Though there are plans for these nations to receive an additional £2.2bn to spend on their services.
The government has however received criticism from Labour Leader Sir Keir Starmer, who states that this news breaks the Conservatives’ pledge at the last election to not raise NI, income tax or VAT. He also suggests that the move is still not aiding the actual workers in the health industry, “A poorly-paid care worker will pay more tax for the care that they are providing without a penny more in their pay packet and without a secure contract”.
To summarise:
- A government pledge to invest £36 billion over the next three years and help the NHS recover from the pandemic.
- To invest in reforming the social care sector.
- A promise that from October 2023, nobody will pay more than £86,000 for their social care – regardless of their assets
- The government will fully cover the cost of care for those with assets under £20,000, and contribute to the cost of care for those with assets of between £20,000 and £100,000.
Source – BBC News & Sky News