A report by the Daily Telegraph claims that the government is going to increase national insurance contributions by 1% to fund social care in the UK.
The report also claims that the Treasury actually wanted an increase of 1.25% but the government has ruled this out given its manifesto pledge to not increase income taxes, national insurance contributions or VAT.
We all know that there is an elderly care funding problem in the UK with the ageing population that has been ignored by successive governments since the 1960s.
Interestingly, the government has failed to deny the reports of potential increases and to be fair, it makes sense to make the increases provided the additional contributions really do go to funding social care unlike our road taxes that are definitely not all spent on highway repairs etc. We have even seen reports in the Times that Sajid Javid, Health Secretary, wanted a 2% increase.
In our opinion, this is the first, honest move any government has made on social care policy for many years.