Court of Protection

National Insurance levy to fund health and social care

On 7th September 2021 the government announced the intention to introduce an additional levy on National Insurance of 1.25% to fund additional spending on the NHS and social care.  Pensioners who are exempt from paying the usual national insurance rates will be required to pay the 1.25% levy only.  Dividend tax rates will rise to 33% to ensure that all types of businesses contribute to the levy.

07 Sep 2021

The initial focus will be on funding the NHS to reduce the backlog of treatment resulting from the pandemic.  However from 2023 the funding of social care will receive greater focus.

At present care is funded by a care home resident until their assets fall to £23,250.  Under the new proposal the upper capital limit would be £100,000.  So, if a resident has less than £100,000 their care would be funded by the state.  However, a contribution from income is likely to remain.

A new lifetime limit of £86,000 is also to be introduced.  A similar proposal was made ten years ago in Andrew Dilnot’s report and a modified version was included in the Care Act 2014.  However, the Care Act provisions never came into effect as a result of local authorities lacking funding to implement the care caps.

M&P Commentary


Samantha Hamilton, the Head of the Court of Protection department at Mullis & Peake LLP, said:

“The main issue at present is the lack of funding for care, so the initial focus is intended to be on improving medical and social care provision.  In the longer term, if the proposals are implemented, it will provide some certainty about the costs of care, allowing better planning for future care needs.

“It is too early to know if this will actually be implemented, and if so, the finer details of how this would work in practice.  Watch this space!”

Related insights

OUR CLIENTS SAY ABOUT US

Ranked highly in Romford and Brentwood for solicitor firms

Residential Property
Mullis & Peake dealt with both the sale and purchase for my mum's properties. Paul is professional, helpful and efficient. Explained all the processes in a timely manner. Top quali...
Jenny
Family
I've found the service I've received at Mullis and Peake to be courteous, professional and highly recommendable.
Carole
Family
Special thanks to Roisin McCorry for her professionalism, resolve, patience, and the support she provided during this very difficult time.
Richard
Dispute resolution
Extremely satisfied with service received from Mullis & Peake. I would thoroughly recommend their service as they were recommended to me.
Paul
Employment
An amazing result, all thanks to my Solicitor: Manzurul Islam for all his hard work! A great lawyer and I’m so glad I had every faith in him to achieve a positive outcome.
BL