How should we fund social care? - a podcast by Institute of Economic Affairs

from 2021-09-10T09:24:18

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After much speculation, Boris Johnson finally announced his plan to address the social care crisis on Tuesday 7th September. As the UK population continues to age, costs for looking after our older people are increasing. Reluctance by previous governments to tackle the issue has left a funding gap of approximately £5-14BN.

The PM announced there will be 1.25% rise in National Insurance Contributions (NIC) for both employers and employees and tax on the share of dividends will also go up by 1.25%.

The government has named the tax the Health and Social Care levy and it will come into force in April 2022. The rise in NIC could see around 25 million working age people pay extra tax whilst retiree’s stay off the hook. This has raised issues around intergenerational fairness.

So how should we fund social care? Can increased taxation close the funding gap and give the elderly the care they deserve? Should we look to alternative models for funding later life care? And what does this latest policy say about the landscape of British politics today?

In the latest IEA Podcast, IEA Communications and Marketing Assistant Kieran Neild-Ali sat down with Harry Fone, Campaign Manager at the TaxPayers’ Alliance, and Professor Len Shackleton, IEA Editorial & Research Fellow, to discuss social care funding.

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