National insurance increase set to fund social care reform - report
The government is set to raise national insurance to pay for long-term social care reform, according to newspaper reports.
The Times said Prime Minister Boris Johnson will announce plans to increase payments by one per cent – for both employers and employees – to raise around £10 billion a year.
Johnson is said to have agreed the approach in principle with Health Secretary Sajid Javid and Chancellor Rishi Sunak last week.
An announcement – originally expected this week - is now expected after the summer recess due to Johnson and Sunak self-isolating following close contact with Javid, who tested positive for Covid.
The Times said the £10 billion fund will at first be used to increase spending on the NHS but will later be called on to cap social care costs.
Johnson is said to favour a Dilnot-style cost cap in order to fulfil a Tory manifesto pledge that people would not have to sell their homes to fund later life care.