Social care promise in doubt as Rishi Sunak ‘to delay cap on costs until 2025’

A Conservative promise to “fix” Britain’s broken social care system by imposing a cap on costs has been thrown into doubt, with Rishi Sunak preparing to announce a major delay.

Boris Johnson’s flagship policy on social care will reportedly not be introduced before 2025 in a move expected to save at least £1 billion a year.

It means the prime minister and his chancellor Jeremy Hunt will not have to feature the cap in next week’s autumn Budget – pushing the issue back until the next spending review.

Mr Sunak suggested an “indefinite” delay to the cap before accepting that it should initially be postponed for two years to avoid political damage, according to The Times.

Mr Johnson announced outside No 10 “that we will fix the crisis in social care once and for all” as he took power in July 2019.

As chancellor, Mr Sunak later pledged to bring in an £86,000 limit on the amount Britons have to spend on personal care, as well as making means-tested support more generous.

The then-chancellor had also announced plans to raise national insurance in a special levy to help fund the social care plan – but the idea was ditched during Liz Truss’s short-lived premiership.

Former cabinet minister Nadine Dorries was among the Johnson allies criticising the apparent U-turn on one of the former PM’s big commitments.

“Given everything Hunt said when chair of [health select committee], I’m very surprised,” the ex-culture secretary tweeted. She added: “It would cost £1 billion in 2023/24 for desperately needed reforms – a Treasury rounding error figure.”

While the delay could save £1billion in the first year, it is thought it could reach £3billion a year if welfare policy were shelved indefinitely.

Mr Sunak and his Mr Hunt are said to be considering a 50-50 split of spending cuts and tax hikes to plug a black hole in public finances of up to £60 billion.

They are said to be considering raising the top rate of tax by 45% or lowering the top rate threshold below £150,000 to attract wealthier people.

Iain Duncan-Smith has warned there will be ‘deep concern’ among Tory MPs ‘if we go over tax hikes’. Up to 50 MPs could vote against any ‘extravagant’ hike, says ex-minister The Telegraph.

Meanwhile, analysis from the Institute of Fiscal Studies has found plans to extend the tax break freeze could bring in £30 billion a year by 2026, more than expected, due to inflation.

The Prime Minister will urge Nicola Sturgeon and other devolved leaders to be “pragmatic” about spending cuts in face-to-face talks on November 10.

The Scottish First Minister and leader of the SNP are expected to stress the importance of avoiding “damaging austerity” measures.