A social care green paper commissioned by the Rt Hon Damian Green MP suggests a range of methods to fill the immediate funding gap in the social care system, one of which is to impose a 1% National Insurance surcharge on those over 50.
The new report, ‘Fixing the Care Crisis’ for the Centre for Policy Studies, was commissioned by the First Secretary of State, Rt Hon Damian Green MP. It puts forward a bold and comprehensive proposal to secure the future of social care.
The report argues that the care system should adopt the model of the state pension – with the Government providing enough support for a decent standard of care via a new Universal Care Entitlement while encouraging and incentivising people to top up this provision from their savings or housing wealth via a Care Supplement.
It also suggests a range of methods to fill the immediate funding gap in the social care system, estimated at approximately £2.75 billion. These include, in decreasing order of preference:
- Taxing the winter fuel allowance
- Diverting savings from the Spending Review
- Potentially imposing a 1% National Insurance surcharge on those over 50
Under Damien Green’s proposals, a basic level of state-funded social care would be provided, with improvements paid for from individual’s savings or their housing wealth.
According to The Times Labour have branded the plans, which would cost more than £300 per year for each over-50-year-old, a “tax on getting old”.
Source: The Chartered Institute for Payroll Professionals (CIPP)