NI surcharge could close £2.75bn social care funding gap 

A social care green paper, Fixing the Care Crisis, for the Centre for Policy Studies has been commissioned by Damian Green MP. It puts forward a proposal to secure the future of social care.

The report argues that the care system should adopt the model of the state pension – with the government providing enough support for a decent standard of care via a new Universal Care entitlement, while encouraging and incentivising people to top up this provision from their savings or housing wealth via a care supplement.

The paper estimates the immediate funding gap in the social care system is about £2.75bn. In order to fill this gap, the paper suggests a range of methods. These include, in decreasing order of preference:

• Taxing the winter fuel allowance
• Diverting savings from the Spending Review
• Potentially imposing a one percent NI surcharge on those over 50

Under Green’s proposals, a basic level of state-funded social care would be provided with improvements paid for from individual’s savings or their housing wealth.