PENSIONERS will have their care costs capped at £86,000 for the first time – and those with assets under £20,000 will have their costs fully covered.
In a major social care and NHS funding announcement today, the PM announced that National Insurance will rise, along with a new levy to help fund social care.
Under the new plans, it will mean that Brits will have their care costs capped, meaning pensioners will not rinse their entire inheritance to pay for it.
Those people with assets of between £20,000 and £100,000 will face a new means tested system, with a sliding scale of costs.
The cap of £86,000 will kick in from October 2023.
The PM said today as he revealed his plans: “Governments have ducked this problem for decades. Parliament, even voted to fix it.
“There can be no more dither and delay.”
In a statement to MPs today the PM confirmed:
- He will break a Tory manifesto vow not to raise National Insurance in this Parliament – to pay for the NHS and social care
- He will hike it by 1.25 per cent to raise billions of pounds of extra cash – which will come in in April 2022
- Boris revealed a massive raid on shareholder profits to raise even more money
- The NHS will get the extra cash at first to help sort out the backlog in the health service, which will then swap to social care from April 2023 onwards
- Over 65s who are working will have to pay some National Insurance in a bid to make it fairer for younger Brits
- The PM, Sajid Javid and Rishi Sunak will hold a press conference this afternoon to lay out the plans
- A basic rate taxpayer will pay an extra £100 a year but those on more cash will pay around £200
- Employers will also be asked to cough up extra cash too