Funds raised from the levy will be ring-fenced to help pay for the NHS and care costs
The Government says funds raised by these tax increases will be legally ring-fenced to help the NHS clear backlogs, as well as resolving long-standing issues around care costs.
In addition, the Government has confirmed that from October 2023, anyone in England with assets under £20,000 will have their care costs fully covered by the state, while those with between £20,000 and £100,000 will be expected to contribute towards their costs but will also receive state support. Anyone with more than £100,000 worth of assets, including property, won’t receive state support.
The Government will also introduce a new £86,000 cap on the amount anyone in England will need to spend on their personal care over their lifetime. Currently, anyone with assets worth more than £23,250 has to fund their care in full.
Care costs are a devolved issue so the respective governments in Northern Ireland, Scotland and Wales can set their own rules. We’ve asked for more information on their plans following today’s announcement and will update this story when we know more.