I am pleased the Prime Minister has grasped the nettle (which has been avoided by successive governments) and announced a plan for the future of health and social care.
No solution to the problems facing social care, which includes so many people being forced to sell their homes to fund care charges, is possible without more Government funding.
The only way the Government can provide the necessary resources is by levying taxes and I think fair minded people understand that. However, in my view, any tax rises must be fair and impact more heavily on those who can afford to pay the most. In addition, the funds raised by that tax rise must also be ring-fenced to ensure they are only spent on health and social care.
I believe the Government’s plan for health and social care achieve those objectives.
The plan will ensure a record additional £12 billion a year is ploughed into the NHS and social care, by way of a new, UK-wide 1.2% ringfenced Health and Social Care Levy, based on National Insurance Contributions (NICs) and with an equivalent increase in dividend tax rates.
The Levy will be paid by employers, employees and the self-employed – including those working beyond the state pension age (who currently do not pay NICs).
A Levy based on NICs is the best way to raise funds, because those earning more will pay more and larger businesses will have to contribute. A typical basic rate taxpayer will pay £3.46 per week, however, the top 14% of taxpayers will contribute around 50% of the revenue raised, and most small businesses will not be affected at all (about 40% of all businesses overall).
You can read more about the plan by using the link below: