BBC News 6 September 2021
Boris Johnson is due to unveil his long-term plans for social care and the NHS as early as Tuesday, with billions more in funding expected.
But the PM is facing a backlash from his own Conservative MPs if National Insurance contributions are increased.
A longer-term funding deal to help pay for social care in England after April has not yet been finalised, but it is said to be "close".
A senior government source said the money will help the NHS tackle the backlog in the wake of the Covid pandemic and face the upcoming winter pressures until new funding begins in April, BBC political editor Laura Kuenssberg said.
Further details of that are expected later on Monday.
Organisations representing the NHS have warned services may have to be cut unless NHS England receives an extra £10bn in funding next year.
The prime minister is facing pressure from his own MPs not to increase National Insurance (NI) to pay for social care - which would break a 2019 Conservative manifesto pledge not to raise taxes.
One cabinet minister, who is against the rise, told the BBC that "it is the wrong thing to do, and the wrong way to go about it".
BBC political editor Laura Kuenssberg said it "sounded like haggling was still going on" over how to solve social care funding.
And she said a delay in reaching an agreement had "created plenty of space for a backlash before the details have even emerged".
Many Conservative MPs are against tax rises to fund reforms, and ex-Conservative Chancellor Lord Philip Hammond told Times Radio increasing National Insurance could provoke a "very significant backlash".
Government sources said meetings have been going on throughout the weekend.
It is widely accepted that major changes are needed to the social care system, which helps older and disabled people with day-to-day tasks such as washing, dressing, eating and medication.
The current system is under pressure from an ageing population after past governments failed to fund it properly or make change. But bringing in a shake-up would cost billions of pounds.
Earlier this week, the government did not deny newspaper reports that it was considering increasing National Insurance contributions by at least 1% to improve social care and tackle the NHS backlog.
National Insurance is paid by workers until they reach the state pension age. For someone on average earnings of £29,536 a year, a 1% increase in National Insurance would cost them £199.68 annually. Employers also pay NI.
Some Tories accept that a tax rise is needed - but say it should not be National Insurance because that could hit younger and lower income workers harder, while pensioners would not have to pay.
During the last election, the Conservatives made a manifesto commitment not to raise National Insurance, income tax or VAT.
Labour has also voiced its opposition to an increase to National Insurance, with shadow foreign secretary Lisa Nandy arguing that the "burden of the social care crisis" shouldn't fall on "supermarket workers and delivery drivers".
The social care system is devolved across the four nations, meaning governments need to develop separate solutions.
What are the challenges facing social care?
- An ageing population means growing demand
- However, council spending in England is about 3% lower than in 2010
- Age UK estimates 1.5 million people in England don't get the help they need
- The fees local authorities pay for care - in a person's own home or a care home - vary hugely
- People who don't qualify for free care are often charged more, with no maximum limit on costs
- There are huge staff shortages - Age UK estimates there are about 45,000 vacancies
