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UK PM Johnson to impose 1.25 percent levy to pay for social care reform

Published: Updated:

British Prime Minister Boris Johnson on Tuesday announced a 1.25 percent levy based on National Insurance contributions to come in from next April to pay for health and social care reform and help address a backlog caused by the COVID-19 pandemic.

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“It is not something I do lightly,” he told parliament, after an uproar among many Conservative backbenchers and reports of a cabinet rift over the plan.

“But a global pandemic was in no one’s manifesto.”

The coronavirus pandemic has fueled a record backlog of 5.5 million routine procedures on the state-run National Health Service (NHS), rising to 13 million by the end of the year if left unchecked, the government said.

It announced an initial package of £5.4 billion (6.3 billion euros, $7.5 billion) in extra funding for the NHS to help clear the backlog over the coming months.

The new national insurance levy will then raise £36 billion over the next three years for the NHS, before it is targeted directly to funding elderly care.

At present, anyone with assets over £23,250 has to pay in full should they need to go into a care home, for instance if they develop dementia.

That has led to many elderly Britons being forced to sell their homes and liquidate their life savings.

Under the new plan, from October 2023, anyone with assets of £20,000-£100,000 will contribute to their care but will also get means-tested support.

No one will have to pay over £86,000 over their lifetime.

Johnson, who entered Downing Street in 2019 claiming to have a plan ready on social care, said successive governments had ducked the electorally tricky challenge for too long.

“There cannot be any more dither or delay,” he said. “You can’t fix the NHS without fixing social care.”

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