Javid calls for two percentage point hike to national insurance to fund social care

Health secretary Sajid Javid has called for a higher hike to national insurance to fund clearing the swelling backlog of NHS work and social care, according to reports.

Javid has reportedly pushed for a two percentage point increase to NICs in a bid to raise funds for England’s ailing social care system.

Javid’s proposed level of NIC increase is higher than the previous one percentage point hike that was set to be announced in the summer.

The announcement was delayed due to prime minister Boris Johnson and chancellor Rishi Sunak having to self-isolate after Javid tested positive for Covid.

Javid is concerned the estimated £10bn the lower rate increase will raise will not be enough funds to enable the NHS to clear the enormous backlog of operations, consultations and routine check-ups that has built up since the onset of the pandemic. 

Senior NHS officials have said the sum will be insufficient.

Some cabinet ministers are against any NIC rise, arguing the cost will fall disproportionately on the young, with the benefits of the funds going to the elderly.

Others have raised concerns that increasing NICs will breach a Tory manifesto pledge not to raise income tax, VAT or national insurance.

The government’s spending watchdog, the Office for Budget Responsibility, thinks Sunak will need to spend an extra £7bn on health spending to deal with the ongoing impact of the Covid crisis.

Johnson has come under intense pressure for not pushing ahead with plans to overhaul England’s social care system after he promised to do so after he won the Tory leadership race in 2019.

A government spokesman said: “We are committed to bringing forward a long-term plan to reform the social care system and we will set out proposals this year.”