London Daily

Focus on the big picture.
Tuesday, Jan 20, 2026

National Insurance: Minister refuses to deny reports of tax hike for social care

National Insurance: Minister refuses to deny reports of tax hike for social care

The justice secretary says social care must be properly funded but declines to "speculate" on plans.

Downing Street did not deny reports of an increase of at least 1% to improve social care and tackle the NHS backlog.

The justice secretary said he would not "speculate" but said there should be a "grown-up conversation" about how to pay for rising social care costs.

The move would break a Tory manifesto commitment at the last election.

"The British public are sensible enough to know that when it comes to the issue of social care we have to find some way in which it will be adequately funded," Mr Buckland told BBC Breakfast.

He said that the Conservative Party had also promised at the 2019 election that it would bring forward sustainable proposals to fund social care.

The Daily Telegraph reports that Downing Street favours a 1% rise in the national insurance rate, affecting about 25 million workers and self-employed people, as well as employers. But it says the Treasury is pushing for a 1.25% increase.

And the Times adds that Health and Social Care Secretary Sajid Javid wants a bigger rise of 2%.

But a source close to Mr Javid said that 2% figure was incorrect and the BBC understands the health secretary is pushing for a lower figure.

For someone on average earnings of £29,536 a year, a 1% increase in national insurance would cost them £199.68 annually.

The Telegraph says the funds will be used to put a cap on the amount an individual has to spend on social care costs over their lifetime.

In their manifesto, the Conservatives said: "The prerequisite of any solution will be a guarantee that no-one needing care has to sell their home to pay for it."

The government said it was "committed to bringing forward a long-term plan to reform the social care system".

In a statement, it said proposals would be set out this year.

'The plan would need a hard sell'

Boris Johnson appears to be ready to break one promise in order to keep another.

He is considering going against a manifesto commitment not to raise national insurance in order to deliver on his vow to fix social care.

If the plan is put forward it will need a hard sell - to the public, most of whom will still pay large amounts towards care, and to Conservative MPs, for whom raising taxes is repellent.

How best to look after the elderly, disabled and others needing care is one of society's most pressing questions.

How to persuade the public to pay for it is the government's most pressing problem and a huge political challenge.

Labour said the NHS and social care needed proper investment but it was wrong to raise national insurance., which would disproportionately hit low-earners, young people and businesses.

"Boris Johnson still hasn't come forward with the plan for social care he promised over two years ago, and instead they're proposing a manifesto-breaking tax rise that would hit working people and businesses hard," said shadow chief secretary to the Treasury Bridget Phillipson.

It comes as former health secretary Jeremy Hunt wrote in the Daily Telegraph that there should be a new "health and care premium" added to tax instead, as he warned against raising national insurance or income tax.

Mr Hunt, who now chairs the Commons health committee, told BBC Radio 4's Today programme that the government must "bite the bullet" and find some way to increase taxes.

"The sums are eye-watering, far bigger than a chancellor can find down the back of a Treasury sofa," he said.

But he said a national insurance increase was the wrong approach because it would not be paid by pensioners.

"Since older people are the biggest beneficiaries I think it's only fair that they should make a contribution," Mr Hunt said.

National insurance is paid on the profits of self-employed people and the earnings of employees when they exceed £9,568 a year.

They then pay 12% of their income up to about £50,000 a year, when it drops to 2%.

That has raised concerns that any rise to national insurance would affect low earners more than high earners.

What are the challenges facing social care?


*  An ageing population means growing demand
*  However, council spending in England is about 3% lower than in 2010
*  Age UK estimates 1.5 million people in England don't get the help they need
*  The fees local authorities pay for care - in a person's own home or a care home - vary hugely
*  People who don't qualify for free care are often charged more, with no maximum limit on costs
*  There are huge staff shortages - Age UK estimates there are about 45,000 vacancies

Boris Johnson has been under increasing pressure to set out his plan for social care reform.

Speaking on the steps of Downing Street on his first day as prime minister in 2019, he pledged to "fix the crisis in social care once and for all with a clear plan we have prepared".

But that plan has yet to be published.

On top of long-term funding challenges, the social care sector has also faced extra costs because of the pandemic.

Councils, which provide social care, have seen their budgets cut over the last decade.

The squeeze on council funding in England means that people who pay for themselves are often propping up the care system.

In England, social care is generally not provided for free. Typically, only those with savings and assets worth less than £23,250 can get help from their council.

There is no overall limit on costs, meaning thousands every year end up selling their homes to pay.

Personal care, such as help with washing and dressing, is free in Scotland for those assessed by their local authority as needing it. Those in a home still have to contribute towards accommodation costs.

The Scottish National Party said the UK government at Westminster should guarantee Scottish workers would not pay for an "England-only policy".

Some care costs are capped in Wales, and home care is free for the over-75s in Northern Ireland.

Newsletter

Related Articles

0:00
0:00
Close
Trump Aides Say U.S. Has Discussed Offering Asylum to British Jews Amid Growing Antisemitism Concerns
UK Seeks Diplomatic De-escalation with Trump Over Greenland Tariff Threat
Prince Harry Returns to London as High Court Trial Begins Over Alleged Illegal Tabloid Snooping
High-Speed Train Collision in Southern Spain Kills at Least Twenty-One and Injures Scores
Meghan Markle May Return to the U.K. This Summer as Security Review Advances
Trump’s Greenland Tariff Threat Sparks EU Response and Risks Deep Transatlantic Rift
Prince Harry’s High Court Battle With Daily Mail Publisher Begins in London
Trump’s Tariff Escalation Presents Complex Challenges for the UK Economy
UK Prime Minister Starmer Rebukes Trump’s Greenland Tariff Strategy as Transatlantic Tensions Rise
Prince Harry’s Last Press Case in UK Court Signals Potential Turning Point in Media and Royal Relations
OpenAI to Begin Advertising in ChatGPT in Strategic Shift to New Revenue Model
GDP Growth Remains the Most Telling Barometer of Britain’s Economic Health
Prince William and Kate Middleton Stay Away as Prince Harry Visits London Amid Lingering Rift
Britain Braces for Colder Weather and Snow Risk as Temperatures Set to Plunge
Mass Protests Erupt as UK Nears Decision on China’s ‘Mega Embassy’ in London
Prince Harry to Return to UK to Testify in High-Profile Media Trial Against Associated Newspapers
Keir Starmer Rejects Trump’s Greenland Tariff Threat as ‘Completely Wrong’
Trump to hit Europe with 10% tariffs until Greenland deal is agreed
Prince Harry Returns to UK High Court as Final Privacy Trial Against Daily Mail Publisher Begins
Britain Confronts a Billion-Pound Wind Energy Paradox Amid Grid Constraints
The graduate 'jobpocalypse': Entry-level jobs are not shrinking. They are disappearing.
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
The Return of the Hands: Why the AI Age Is Rewriting the Meaning of “Real Work”
UK PM Kier Scammer Ridicules Tories With "Kamasutra"
Strategic Restraint, Credible Force, and the Discipline of Power
United Kingdom and Norway Endorse NATO’s ‘Arctic Sentry’ Mission Including Greenland
Woman Claiming to Be Freddie Mercury’s Secret Daughter Dies at Forty-Eight After Rare Cancer Battle
UK Launches First-Ever ‘Town of Culture’ Competition to Celebrate Local Stories and Boost Communities
Planned Sale of Shell and Exxon’s UK Gas Assets to Viaro Energy Collapses Amid Regulatory and Market Hurdles
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
×