Labour is drawing up plans to levy a one-off tax of up to £12,000 on everyone in England and Wales in return for state-funded long-term care. The proposal aims to reduce the number of family homes and inheritances that are lost to pay care home fees with the Government said to be in favour of spreading the cost of caring for an ageing population more fairly. The new system would either involve the fee being deducted from an individual’s estate after death or becoming payable on retirement. The proposed tax will be included in the forthcoming Green Paper on adult social care funding, where it will be one of several options to be put forward for funding reform. Although concerns have been raised that the levy is little more than a ‘stealth tax’, focus groups have shown that up to 80% of people would prefer the option of a state-run insurance system to the prospect of selling their home to pay for care. Former health secretary Patricia Hewitt commented: ‘I have always thought people would be willing to trade a certain amount of inheritance tax for the reassurance of knowing that their elderly parent was going to be looked after free of charge.’ Charity Counsel + Care also gave their support to the proposed tax, stating that the £2.9 billion that could potentially be raised is the fairest way to spread the cost of funding care for the elderly.
posted by Cheselden Continuing Care at
12:59
