Boris Johnson is expected to reveal a rise in National Insurance next week as he sets out plans to rectify the social care crisis.
The Prime Minister is expected to break his manifesto pledge on raising taxes in the biggest overhaul of funding in a generation and tackle issues such as NHS waiting lists.
It is expected that the NI increase will be between 1 and 1.25% but the cost an individual would have to pay would be capped between £60,000 and £80,000, reports MirrorOnline.
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However, it has been reported that the Prime Minister is clashing with the treasury over how much money the increase will bring in.
Labour has opposed the concept of a NI increase to fix the social crisis as it is believed it will disproportionately affect younger and lower-paid workers, who would be contributing more than older and wealthier people.
Former Tory Health Secretary Jeremy Hunt has also urged ministers to scrap the plans of hiking NI, with him favouring a tax rise instead.
Mr Hunt said: “I'm really arguing that we need to bite the bullet and say there has to be a tax rise of some sort.
“I think the number one priority of the electorate is to have good health and care services, and I think they understand that those pressures, irrespective of the pandemic, are only going to increase in the years ahead, and they want Britain to have the safest, highest quality health service in the world and a good social care system as well and at the moment, we're not going to be able to do that with the resources we have.”
The Covid pandemic has deepened the issues within social care, with around 1.5m elderly people are missing out on the help they need due to the crisis.
Justice Secretary Robert Buckland said no final decision has been made on the NI rise.
Mr Buckland said: “What we said in the manifesto about social care is no one has a monopoly of wisdom about these issues and the British public are sensible enough to know that when it comes to the issue of social care, we have got to find some way in which it will be adequately funded.”
The plans have come almost two years since Mr Johnson insisted he had a “clear plan” to give people dignity and security in old age.
Despite this, ministers are yet to provide any concrete details on plans to help the sector.
