Social Care: Reforms and funding

The question of how to fund social care is one that has dogged politicians of all parties for decades. On entering Downing Street in July 2019, the Prime Minister Boris Johnson said “…we will fix the crisis in social care once and for all, and with a clear plan we have prepared…”. On Tuesday 7 September 2021, details of that plan finally emerged.

Highlights

  • Government reforms to social care will impact those entering care in England from October 2023.
  • The cap for full self-funding will rise to £100,000 from £23,250.
  • The lower end means test capital limit will rise to £20,000 from £14,250.
  • A total lifetime fee cap will initially be set at £86,000.
  • A new ‘Health and Social Care Levy’ (HSCL) of 1.25% will be added to national insurance contributions for 2022/23. From 2023/24 this will be a separate charge enabling the HSCL to be levied on employees and the self-employed over state pension age (SPA).
  • Dividend tax rates will rise by 1.25% from 2022/23.




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