Responding to reports that the Government is set to reform social care funding by increasing National Insurance contributions, James Kirkup, Director of the Social Market Foundation, said:
“Politicians face a difficult truth: there is no easy way to fund a social care system which has suffered from decades of neglect, with too many people facing the prospect of a catastrophic lottery of care costs and quality.
“It is in the interest of all generations to reach an equitable solution, but raising National Insurance contributions fails to meet that mark and breaks the contract between generations. A NI increase passes the buck to poorer, working families who have suffered significant financial hardship during the pandemic, whilst protecting the wealth of asset-rich older voters.
“With an estimated £10 billion required to plug the funding gap, the SMF has recommended a one-off “payment at 65” for those with household assets of more than £150,000 per adult. This levy would cap the cost of care for the elderly whilst also ensuring that workers don’t have to bear the burden of funding social care.”
- For details of the SMF proposal, see https://www.smf.co.uk/publications/no-easy-options/
- For media enquiries, please contact Linus Pardoe, SMF Impact Officer – linus@smf.co.uk – 07402 576995