Imposing a one percent National Insurance (NI) surcharge on those over the age of 50 could help to fill the immediate funding gap in the social care system, a new paper suggests.
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:
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.