Support 100 years of independent journalism.

  1. Chart of the Day
8 September 2021

Why the social care crisis is not over

Only £5.4bn (15 per cent) of the £36bn of new revenue raised will go towards social care.

By Michael Goodier

Despite being billed as a generational attempt to solve Britain’s social care crisis, most of the new revenue set to be raised by a 1.25 percentage point increase in National Insurance next year is instead going towards the NHS, with only £5.4bn provided to local councils to help with social care costs.

That’s according to the Treasury’s own calculations document, which states that the new rise will eventually be replaced by a separate tax from 2023 that will appear on the public’s payslips as the “Health and Social Care Levy”.

Only £5.4bn of new health and social care spending will go towards social care
New health and social care spending 2022-25

The social care part of this levy – at least for the first three years – will only represent 15 per cent of the total new spending, with £24.9bn going towards NHS England to help clear the backlog of cases caused by Covid-19 (an estimated £5.7bn will go towards the devolved nations). Health Secretary Sajid Javid said “no responsible health secretary can make that kind of guarantee” when asked whether the new levy would be enough to clear the NHS backlog.

The government’s plan to increase National Insurance has been criticised as generationally unfair

Torsten Bell, chief executive of the Resolution Foundation think tank said: “The tax rises that will pay for a bigger NHS are generationally unfair, excluding rich retirees while prioritising wealthy landlords over their tenants. And while the social care cap will prevent people being hit with catastrophic costs, it will benefit southern households far more than those living in Red Wall seats.”

Select and enter your email address Quick and essential guide to domestic and global politics from the New Statesman's politics team. A weekly newsletter helping you fit together the pieces of the global economic slowdown. The New Statesman’s global affairs newsletter, every Monday and Friday. The New Statesman’s weekly environment email on the politics, business and culture of the climate and nature crises - in your inbox every Thursday. Our weekly culture newsletter – from books and art to pop culture and memes – sent every Friday. A weekly round-up of some of the best articles featured in the most recent issue of the New Statesman, sent each Saturday. A newsletter showcasing the finest writing from the ideas section and the NS archive, covering political ideas, philosophy, criticism and intellectual history - sent every Wednesday. Sign up to receive information regarding NS events, subscription offers & product updates.
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

[See also: Will the money raised by Boris Johnson’s new tax hike ever be spent on social care?]

Content from our partners
What are the green skills of the future?
A global hub for content producers, gaming and entertainment companies in Abu Dhabi
Insurance: finding sustainable growth in stormy markets