Former chancellor Sir Sajid Javid has declared the UK is "long overdue" a serious discussion about NHS funding as he backs a major shift towards social insurance. The Conservative politician warned the country "cannot afford" to ignore how Britain pays for healthcare.
Sir Sajid, who also served as health secretary, made the comments in a foreword for a new PolicyExchange report calling for fundamental changes to the NHS funding model. The centre-right think tank argues for moving away from the current "entirely socialised model" to include significant social insurance elements.
Report backs insurance model
The think tank suggests "better quality healthcare" could be delivered through a hybrid system similar to those used in France, Germany and Singapore. However, the report explicitly states that "under no circumstances" should the UK attempt to replicate the American healthcare model.
Sir Sajid described the NHS as "one of our country's most treasured and beloved national institutions" but said Britain has reached a crossroads. He argued politicians must choose between raising taxes to fund more healthcare spending or reforming the entire system.
Charges proposed for services
The PolicyExchange report recommends introducing a £20 charge for GP visits, though low-income groups would be exempt from the fee. The think tank also suggests ending universal free prescriptions for over-60s, making eligibility dependent on income instead.
Additional proposals include charges for "more luxurious hospital accommodation", which the report claims could raise £700 million annually. The think tank advocates maintaining universal healthcare coverage whilst allowing a basic model to be supplemented by additional insurance policies.
Government regulation maintained
Under the proposed system, the Government would continue regulating insurers and healthcare providers. The think tank insists the service should retain the NHS name, with the primary change being how healthcare is financed rather than delivered.
Sir Sajid emphasised that "responsible politicians" concerned with the national interest must examine every reform option available. He warned against burying heads in the sand when confronting the NHS funding challenge.
(PA) Note: This article has been edited with the help of Artificial Intelligence.