Public spending on the NHS and social care

In September 2021, Boris Johnson announced new spending for the NHS and social care funded by a 1.25 percentage point increase in national insurance contributions – known as the Health and Social Care Levy. The levy was effectively introduced from April 2022.

Since then, politicians have become increasingly divided over the national insurance rise. Labour indicated the party would scrap the increase given the rising cost of living. Conservative backbenchers have grown increasingly uneasy over the increase to national insurance, which breaks a key manifesto promise. While Chancellor, Rishi Sunak resisted pressure to scrap the levy, but raised the national insurance threshold from July 2022 (essentially reducing the amount of money the levy will raise) and announced that an income tax cut would follow in 2024.

Tax and spending were a key theme of the Conservative leadership campaign. During the campaign, Liz Truss pledged to scrap the national insurance increase as part of a wider £30bn package of tax cuts intended to boost economic growth and ease the cost of living. However, the new prime minister has been less forthcoming about the implications of her plans for the funding available to public services, including the NHS and social care.

Support for the Health and Social Care Levy remains, but has dropped slightly

Our November 2021 survey took place after the levy was announced but before any tax rise was implemented. At that time, we found that most people (58%) supported the levy and only a fifth opposed it.

People first felt the impact of the policy in April 2022, when the increased national insurance rates came into effect. Our survey in May 2022 found support for the levy remains, but has dropped slightly since November 2021 (Figure 12). Just over half (52%) of the public still support the levy, while 23% oppose it.

Source: Ipsos survey commissioned by the Health Foundation, 2022. Conducted online via KnowledgePanel UK between 26 May and 1 June 2022. Base: 2,068

Support for the levy is highest among older people past retirement age (71% of those aged 65–74 years and 63% of those aged 75 years and older) and lowest among younger age groups (40% aged 16–34 years). Conservative (68%) and Liberal Democrat (62%) voters are also more likely to support the levy than Labour voters (52%).

In the context of rising concerns about the increasing cost of living, the continued support for the levy suggests the public wants the government to invest in improving NHS and social care services. Health Foundation analysis suggests that even with the new funds raised by the levy, NHS funding will not be enough to make improvements to care. Assuming the prime minister follows through on her commitment to scrap the levy, the government will need to replace the revenue the levy would have raised through other means or be open with the public about the implications of cutting NHS and social care funding by £13bn per year.

Most think the NHS needs a further increase in funding

Overall, the public is fairly divided on the right level of public spending: 28% think spending should be higher than before the pandemic, 30% the same and 24% lower. But the NHS remains the public’s main priority for public spending, followed by social care for older people.

The public tends to think that further public spending on the NHS is needed. The majority (71%) think that the NHS needs a further increase in funding beyond the new levy, compared with 22% who think that the NHS does not need further funding and should operate within its current budget (Figure 12). Views are divided along party lines. The vast majority of those intending to vote Labour (86%), Liberal Democrat (82%) or Green Party (87%) believe the NHS needs more funding, compared with just over half (52%) of those intending to vote Conservative.

Source: Ipsos survey commissioned by the Health Foundation, 2022. Conducted online via KnowledgePanel UK between 26 May and 1 June 2022. Base: 2,068

While the majority of the public think the NHS needs more funding, there is less agreement over how any increases for the NHS or social care should be funded. When people were asked how they think such funding increases should be raised, the most popular proposals across both services included increasing income tax, increasing inheritance tax, and making spending cuts to other services (Figure 13). With the NHS accounting for an ever-increasing share of day-to-day government spending, the prospect of cutting other areas of spending would present policymakers with difficult decisions, especially in the context of the new prime minister’s pledge to cut taxes.

Source: Ipsos survey commissioned by the Health Foundation, 2022. Conducted online via KnowledgePanel UK between 26 May and 1 June 2022. Base: 2,068

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