The Prime Minister ruled out any reductions in health service funding and will stick to his promise to funnel in an extra £13billion a year to help with Covid19 backlogs and social care.
But that cash will have to be found from other departments because the 1.25 per cent rise in National Insurance to pay for it was reversed by Liz Truss.
Treasury insiders said the black hole of up to £50billion in the nation’s finances is “even bigger” as a result of the move.
A Whitehall source said. “It’s going to be quite grim for a lot of people because of it.”
It remains unclear where the money will be clawed back. And last night it was reported the PM has done a U-turn on a civil service cull which would have saved millions. The Trades Union Congress tweeted: “Rishi Sunak has just written to civil servants telling them that the tar get of cutting 91,000 jobs has been scrapped. Big win for civil servant trade unions.” However, putting the social care cap off for at least a year could save around £1billion a year. The plan – devised by former PM Boris Johnson – will set a £86,000 ceiling on the amount anyone in England will need to spend on their care over their lifetime.
Currently they have to pay until their savings and assets drop to £23,250. The change is due from October next year.
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