The 1981 budget statement committed to removing tax on medical insurance premiums paid by employers for the benefit of staff earning under £8,500 a year.
Following the Health Services Act 1980, the NHS (constitution of district health authorities) order created 192 DHAs to replace area health authorities (AHAs).
As the prime minister offered public reassurance that the NHS was safe, the Cabinet considered introducing private health insurance and increasing user charges.
This Act required district health authorities and social services to provide aftercare services (including accommodation) to those moving back into the community after being discharged from compulsory hospital stays.
The Act consolidated legislation relating to residential care homes and nursing homes. It required them to be registered with the local social services authority.
The House of Commons Committee on Social Services supported the concept of community care, but was concerned about the release of 'mentally disabled' people into the community without adequate support.
