National insurance increase of 1% could boost social care by £5bn finds research
Posted on 14/11/2017 by
An increase of just 1% in national insurance contributions would generate up to £5bn extra to fund social care, according to new research.
Independent Age and the Institute for Public Policy Research (IPPR) say it would be the most progressive and politically achievable way of solving the adult care funding crisis.
They say funding gap could reach £2.7bn by 2020/21 and £9.5bn by 2030/313 just to preserve the system in its current form.
But more money will be needed to meet the increasing demand presented by an ageing population and improve the overall quality of care on offer.
The new research examined options for future funding for social care also including means testing the winter fuel payment, scrapping the triple lock on the state pension and increasing inheritance tax.
Independent Age and the IPPR say the government must explain the extent of the crisis in social care and set out measures that can realistically be acted on.
Independent Age chief executive Janet Morrison said: 'Social care is in desperate need of a sustainable funding solution.
'However, for all the short-term solutions governments have introduced, the care system needs meaningful change that will work over the long-term.