Boris Johnson has postponed the implementation of social care reform until the autumn.


Boris Johnson has postponed the implementation of social care reform until the autumn.

After Covid scuppered the final stages of talks to sign off the plans, Boris Johnson has postponed social care reforms until the autumn. No 10 did not rule out a 1% increase in national insurance to raise £10 billion a year to pay for the shake-up. Insiders said the plans are “far advanced,” but not quite “over the top.”

After Mr. Javid was diagnosed with coronavirus, negotiations between Mr. Johnson, Health Secretary Sajid Javid, and Chancellor Rishi Sunak were put on hold. The announcement is not expected until after the summer recess of parliament. Increasing NI would be in violation of a Conservative platform promise not to raise personal taxes.

The spokesman for the Prime Minister refused to be pulled into speculation. “The process of deciding on our recommendations is still ongoing,” he said. We’ll get that figured out by the end of the year.”

Paul Scully, the business minister, claimed he was unaware of the NI increase.

“This issue has been around for a long time, and we really do need to get to grips with it, and that’s exactly what the Prime Minister and the Health Secretary are going to do,” he said.

Although there have been warnings that the national insurance plan penalizes workers, organizations have stated that action is required.

According to Steven Cameron, a pensions director at Aegon, the decision “would appear difficult to justify on intergenerational fairness grounds.”

Age UK’s charity director, Caroline Abrahams, said the organization opposes older people shouldering the full care burden, but it “does seem reasonable that they should make a contribution to it” if they can afford it.

“Social care requires a more sustainable solution than jacking up taxes on working people and businesses,” said John O’Connell of the TaxPayers’ Alliance.

Increasing NI “asks younger and lower-paid workers to contribute more than older and wealthier people, compared to a fairer hike in income tax,” according to Torsten Bell of the Resolution Foundation.

The raise would be “another another burden on working-age individuals at a time when jobs are precarious, inflation is growing, and salaries are squeezed,” according to Professor Len Shackleton of the Institute of Economic Affairs think tank.

The government’s plan to fund social care reform by levying a 1p surcharge on national insurance payments should not be interpreted as a tax on the young.

Working people of all ages would be making a financial investment in their future health care. “Brinkwire News in Condensed Form.”


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