Social security contributions are expected to increase 1.25% from April 2022 to finance social welfare costs

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    The revenue from the levy is earmarked to pay for NHS and care costs

    The government says the funds raised through these tax increases will be legally earmarked to help the NHS clean up arrears and resolve long-standing problems related to care costs across the UK.

    In addition, the government has confirmed that from October 2023, everyone in England those with assets below £ 20,000 will have their care costs fully covered by the state, while those with assets between £ 20,000 and £ 100,000 will be expected to share their costs but will also receive government support. Government assistance is not available to anyone with assets worth more than £ 100,000, including property.

    The government will also introduce a new cap of £ 86,000 on the amount anyone in England will have to spend on personal hygiene during their lifetime. Currently, anyone with assets over £ 23,250 must fully fund their care.

    Care costs are a decentralized issue, so the respective governments in Northern Ireland, Scotland and Wales can set their own rules. This is what they said:

    • In Northern Ireland, a public consultation on welfare reform is slated to start later this year. Currently, no one over the age of 75 pays for home care while inpatient care is means tested based on your assets, including savings and assets. If you have assets over £ 23,250, you are responsible for the full cost of care. However, if you have assets of less than £ 14,250 it will be ignored when calculating the amount to be paid for care. Between these upper limits there is a scale for the expected contribution.
    • In Scotland, the government says there are no immediate plans to reform its own welfare regime. Here the government offers free on-demand home care. People also receive free inpatient care if they have savings or assets less than £ 18,000. Those with savings and wealth between £ 18,000 and £ 28,750 will have to finance some of their care and those with more will have to finance their own care, apart from a £ 193.50 / week personal hygiene contribution and a £ 87.10 / week allowance Week towards grooming.
    • In WalesThe government says it has no plans to change its current social welfare ceilings and state aid eligibility criteria. Here, the weekly non-inpatient welfare contribution rate is capped at £ 100 / week, with high incomes or wealth over £ 24,000 (without a home) likely to pay up to the limit. Individuals with assets of £ 50,000 or more must fund all care in Wales.



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