Boris Johnson today outlined changes to social care in England that are set to overhaul the sector and initiate the biggest catch-up programme in the history of the NHS.

The pandemic cost the Government around £407 billion according to Johnson, which went from supporting furloughs to getting the vaccine rollout operational.

Speaking to the House of Commons today he said: “It would be wrong for me to say that we can pay for this recovery without taking the difficult but responsible decisions about how we finance it.”

Meeting these costs won’t come from borrowing or taking on more debt, and it comes at a time when the NHS is already incredibly stretched.

Here are the details of what this social care reform means for the NHS and the public.

What has been announced?

The Government has pledged to invest £36 billion over the next three years to help the NHS recover from the coronavirus pandemic and reform the adult social care system so people no longer face catastrophic care costs.

From October 2023, nobody will pay more than £86,000 for their social care – regardless of their assets.

The Government will fully cover the cost of care for those with assets under £20,000, and contribute to the cost of care for those with assets of between £20,000 and £100,000.

Why is this happening?

At the moment the NHS waiting list is at an all-time high as the nation continues to recover from the backlog started due to the coronavirus pandemic.

The social care sector has been in need of substantial reform for years, and the pandemic effects have brought those issues to the forefront.

Problems related to workforce sustainability have been accelerated as a result.

How the health and social care levy will impact you

This money will be funded through a UK-wide health and social care levy that is set to begin in April 2022.

It will be based on National Insurance contributions paid by working adults, which will rise by 1.25 percentage points  between 2022 and 2023.

From April 2023 this levy will actually appear as a separate entry on individuals’ pay slips, and from this point working adults above pension age will also chip in.

Dividend tax is increase as well

The Government is also increasing the rate of dividend tax by 1.25 percentage points to ensure people who receive income from dividends make the same contribution.

How much will I have to pay?

This levy will be based on income, with those earning more having to pay more.

For example, a basic rate taxpayer earning £24,100 will contribute £180 a year and a higher rate taxpayer earning £67,100 will contribute £715 a year.

How will the NHS benefit?

The money is expected to fund an extra nine million checks, scans and operations, as well as help the NHS focus on innovation.

What about social care?

This reform should see social care receive around £5.3 billion between 2022-23.

Less than half of this will fund the minimum floor and cap.

Around £500 million will go towards workforce training and skills, with some additional finance heading the way of increasing local authority payment rates, integration and quality.

When will social care get the money?

The social care sector will receive some of the extra money in the next financial year and throughout the three-year window.

But more money will be diverted to the sector after the three years as people hit the cap.

What about Scotland, Wales and Northern Ireland?

The devolved nations will receive an additional £2.2 billion in additional health and social care spending from the levy.