How will the Government's NHS and social care plans affect you?
Plans for the 'biggest catch-up programme' for the NHS have been unveiled by the Government.
The Government has set out its plans for the biggest catch-up programme in the history of the NHS in England and an overhaul of the social care sector.
What has been announced?
The Government has pledged to invest £36 billion over the next three years to help the NHS recover from the coronavirus pandemic and reform the adult social care system so people no longer face catastrophic care costs.
From October 2023, nobody will pay more than £86,000 for their social care – regardless of their assets.
The Government will fully cover the cost of care for those with assets under £20,000, and contribute to the cost of care for those with assets of between £20,000 and £100,000.
Why is this happening?
The NHS waiting list is at an all-time high as the nation recovers from the coronavirus pandemic.
The social care sector has been in need of substantial reform for years, and workforce and sustainability issues have been exacerbated by the recent crisis.
How will it work?
It will be funded through a UK-wide health and social care levy from April 2022, based on National Insurance contributions paid by working adults.
Between 2022 and 2023 National Insurance rates will rise by 1.25 percentage points. From April 2023, the levy will appear as a separate entry on individuals’ pay slips. It is at this point that working adults above pension age will chip in.
The Government is also increasing the rate of dividend tax by 1.25 percentage points to ensure people who receive income from dividends make the same contribution.
How much will I have to pay?
The tax will be progressive, meaning those who earn more will pay more.
For example, a basic rate taxpayer earning £24,100 will contribute £180 a year and a higher rate taxpayer earning £67,100 will contribute £715 a year.
How will the NHS benefit?
The money is expected to fund an extra nine million checks, scans and operations, as well as help the NHS focus on innovation.
What about social care?
Social care will receive £5.3 billion between 2022-23 and 2024-25.
Less than half of this will fund the minimum floor and cap.
Around £500 million will go towards workforce training and skills, while money will also go towards increasing local authority payment rates, integration and quality.
When will social care get the money?
The social care sector will receive some of the extra money in the next financial year.
But more money will be diverted to the sector after the three-year window as people hit the cap.