Categories: Finance

Sunak wants insurers to explore products

British finance minister Rishi Sunak has directed Treasury officials to explore with the insurance industry new financial products. This would help people, to cover their share of costs for social care. Prime Minister Boris Johnson set out plans to raise taxes on workers, employers and some investors. By this tax they will try to fix a health and social care crisis, by funding them. The government said that no one would have to pay more than 86,000 pounds, towards the cost of their care over their lifetime.

If the costs rise over that amount, the state will step in. Social care refers to long-term health care outside hospitals. Sunak has asked officials to work with insurers for considering new products to help with social care costs. The treasury source said that they are hopeful that in time the cap on costs will provide the clarity, that the insurers need to create new products. The Financial Times, first reported this news and said that if insurance was available to cover expenses up to 86,000 pounds, it would help Johnson claim he was honouring the 2019 Conservative party manifesto pledge that nobody needing care should be forced to sell their home to pay for it.

Johnson’s move to raise taxes broke a promise made in that manifesto to not raise such levies to fund social care. The support for Johnson’s Conservative Party has slipped behind the opposition Labour Party, as per a recent poll. This slip could even be to its lowest level since the 2019 national election, after announcing the tax rise.

WIN

Share
Published by
WIN

Recent Posts

Legislative Body Pressures Swiss Government to Moderate Proposed Capital Requirements for Major Domestic Bank

A significant intervention was registered by a powerful Swiss parliamentary body, the lower chamber's influential…

3 weeks ago

Nationwide Banking Paralysis Ensues as Labor Demands Collide with Deepening Tunisian Economic Crisis

A significant, two-day cessation of work was formally initiated by Tunisian bank employees on a…

3 weeks ago

Cloud Service Disruption Resolved Following Global Impact on Essential Digital Services

The successful mitigation of a major service disruption affecting the technology giant's   Azure cloud…

3 weeks ago

European Asset Manager Demonstrates Resilience with Record Asset Accumulation

A report was issued on a Tuesday by Amundi, which stands as the largest asset…

3 weeks ago

Strategic Licensing Bid Underscores Swiss Bank’s Focus on U.S. Wealth Management Expansion

A significant step toward expanding its presence in the global financial hub was announced by…

3 weeks ago

Weaker-Than-Expected Inflation Data Bolsters Market Expectations for Federal Reserve Rate Cut

Official data released on a Friday indicated that U.S. consumer prices had risen slightly less…

4 weeks ago