Boris Johnson Lays Out 1.25% Tax Rise For NHS and Social Care Reforms

social care

Triggering furious debate, the UK Government has announced that it will increase National Insurance contributions. This is to pay for the NHS backlog and social care reforms.

The social care tax plan

Plans outlined this week by Boris Johnson to raise the taxes for employees, employers and investors with shareholder dividends have angered some politicians. The announcement has triggered furious debate over breaking manifesto promises. Alongside increasing taxes for both the young and those on modest incomes.

Following the massive financial implications of the Coronavirus pandemic and the urgent need to address NHS funding and the social care crisis, the Commons backed Boris Johnson’s plans. As forecasted costs are expected to double over the next two years, the Commons voted by 319 to 248 in favour of the 1.25 per cent National Insurance increase.

NHS backlog

The increases will specifically go towards health and social care costs and will be paid by all working adults. This will raise £36bn over the next three years and the social care fund will tackle the NHS backlog.

During the pandemic, millions of NHS patients experienced cancellations and extended delays in receiving treatment as resources were refocused. The social care fund will finance innovation and new technology. This will include new treatments, increased capacity and diagnostic and surgical procedures.

Changes to the social care system

Over the following three years, a proportion of the fund (£5.4bn) will cover social care system changes. Alongside a care cost cap of £86,000 over a person’s lifetime, starting in October 2023.

The State will cover care costs for anyone with assets less than £20,000. Those with assets worth between £20,000 and £100,000 will have subsidised care costs.

Watch the heated debate social care tax plan on Good Morning Britain:

Regarding his broken promise not to raise levies to fund social care, Boris Johnson told parliament:

“It would be wrong for me to say that we can pay for this recovery without taking the difficult but responsible decisions about how we finance it. It would be irresponsible to meet the costs from higher borrowing and higher debt.”

The Prime Minister added that care reform was needed for the UK’s elderly and disabled:

“You can’t fix health and social care without long-term reform. The plan I’m setting out today will fix all of those problems together. I accept that this breaks a manifesto commitment which is not something I do lightly, but a global pandemic was in no one’s manifesto.”

Labour leader Keir Starmer stated that the rise was a, “sticking plaster” and went on to say:

“This is a tax rise that breaks a promise that the Prime Minister made at the last election. Read my lips, the Tories can never again claim to be the party of low tax.”

He also said the increase will target young people, supermarket workers and nurses, rather than those who can afford to contribute more.

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