As you will no doubt know, the government have finally put forward their reform for the social care sector – and moreover how it will be funded. As with all these things, there are pros and cons, some of which are highlighted below.
What does it mean for us?
The changes themselves are wrapped into a much larger pot which also includes more money for the NHS to help them recover from the pandemic. These will be funded by us…
- Workers paid through PAYE will pay an additional 1.25% in National Insurance
- Employers will also pay an additional contribution in National Insurance
- Workers paid in dividends from their own limited company will pay an additional amount in dividend tax
In return, the idea is…
- The NHS will recover more quickly from the COVID pandemic
- Care costs will be more easily met by the state
- Care costs on individuals will be reduced & more individual money can be retained in future
The NHS
Whilst its clear the backlog of work for the NHS is huge, its less clear that the problem is solely related to a lack of funds. In fact, the bigger issue appears to be the lack of staff & infrastructure and so whilst additional funds are naturally always welcome, its less clear how it will be spent and benefits it will bring.
Some for example, have said that the NHS operates like a black hole, simply soaking up any money given to it, regardless of need. Whether that’s true or not, certainly over the years there have been significant areas of waste which we wouldn’t wish to repeat.
Split the money
Whilst the money raised by the above tax rises is significant, its far less clear how much is going to the NHS, and what will be left for social care. Its probably also fair to say that while many agree that social care certainly needs fixing, they may be less happy to fund the NHS exponentially in the coming years, only for the system to grid along as it tends to do.
What we hope
Regardless of any feelings about the tax rise itself, from our side, we hope for the following outcomes…
- Social care is better funded across the board
- Individuals can more easily access the care they need without the need for them to spend their entire life savings to do so
- Local authorities are able to pay care & nursing homes fore the care their clients receive at a decent level
- Staff (nurses & HCAs) are paid in line with other sectors
- HCAs are recognised for the work they do & as a profession, rather than a job anyone can do (which itself is far from true!)
