Social care: What are the changes to the England, Scotland and Wales’ system and how much will people have to pay?
National Insurance will be increased to pay for care, with new asset thresholds determining how much people pay and a cap on how much people will have to spend during their lifetimes.
Boris Johnson has announced a major shake-up of social care funding in England.
A hike in National Insurance will pay for a pledge made when Mr Johnson became prime minister in 2019 to “fix the broken care system”. However, this means he will be breaking his promise to not raise taxes, which has angered Tory backbenchers. Mr Johnson said he was unable to keep that promise due to the COVID pandemic.
What are the changes to social care?
Social care supports the elderly and disabled adults of all ages with non-clinical needs in people’s own homes, residential care homes or in places such as day centres or supported housing.
Unlike the NHS, it has no dedicated funding and is paid for through local authorities.
The reforms will see a threshold of £100,000 on the amount of assets a person has before they have to fully fund their own care. Currently, the threshold is £23,250. From October 2023, anybody with financial assets lower than £20,000 will not have to pay anything for their care from their assets – but may have to contribute towards costs from their income. The amount anyone with assets between £20,000 and £100,000 will pay will be means-tested so the fewer financial assets someone has the less they will pay for their care. The amount anyone has to spend on care will be capped at £86,000 over their lifetime – including younger people receiving care.
At least £500m will be invested over three years to train care workers and provide professional development, fund mental health resources for staff and reform the social recruitment situation. Further detail on that will be published soon. The government has also promised to support the 5.4m unpaid carers, invest in the disabled facilities grant and supported housing, improve information to help understand options for care users and introduce a support system to ensure local authorities are delivering on their obligations to users.
The changes to social care only apply to England, but because tax changes apply to all four nations, Scotland, Northern Ireland and Wales will also see a rise in National Insurance payments. Mr Johnson said the devolved nations will together receive an extra £2.2bn a year towards health and social care – 15% more than they would from contributions by their citizens alone. A total of £1.1bn will go to Scotland in 2024-25, £700m to Wales and £400m on Northern Ireland.
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