Politics

Boris Johnson locked in social care funding talks as Tory grandees join National Insurance revolt



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oris Johnson remained locked in talks over how to fund social care reforms as Tory grandees warned hiking National Insurance would unfairly hit young and lower income workers.

Former chancellor Lord Hammond told the Prime Minister there will be a “very significant backlash” if he goes ahead with the the manifesto-breaking move this week as expected.

Mr Johnson, Health Secretary Sajid Javid and Chancellor Rishi Sunak have been thrashing out the details, as the Government prepares to announce its long-awaited reforms to social care.

Reports suggested that £5.5 billion more funding has been agreed for NHS shortfalls later this year, including to help clear the backlog caused by the coronavirus pandemic.

But Downing Street sources said details of the social care plans were still being worked out on Sunday night and that a day for the announcement was yet to be confirmed.

The Sunday Times reported that lifetime contributions on care will be capped at about £80,000 and National Insurance will be increased by 1.25% to raise between £10 billion and £11 billion per year.

Lord Hammond told Times Radio: “I think that if the Government were to go ahead with the proposed increase in National Insurance contributions, breaking a manifesto commitment in order to underwrite the care costs of older people with homes, I think that would provoke a very significant backlash.”

The Tory peer, who was chancellor between 2016 and 2019, also said he would “vote against” the legislation in the House of Lords if the opportunity arises.

“Economically, politically, expanding the state further in order to protect private assets by asking poor people to subsidise rich people has got to be the wrong thing to do,” he said.

Sir John Major (Dominic Lipinski/PA) / PA Wire

Lord Clarke, the Conservative chancellor between 1993 and 1997, said there are “problems with national insurance” that should be tackled while raising it.



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