Inheritance levy could be proposed to fund residential care costs

2010-02-12 19:42:37

In other news around the White Paper, the Guardian reports that the government is considering a compulsory levy of £20,000 to be charged to an individual’s estate after their death. The money raised would be put into the social care funding ‘pot’ for care home fees. Ministers are currently divided over the scheme, which some fear will prove unpopular with voters if it is confirmed before the election. The scheme, intended to replace the current system whereby many people have to sell their homes to pay for residential care, is supported by a number of organisations including the charity Age Concern and Help the Aged. Its main downside is that the levy would still be payable from the deceased’s estate even if they had received little or no state-funded social care in their lifetime. However, the government hopes that, as well as spreading the cost of social care across the population, the fixed nature of the levy would mean that in most cases, parents could still leave something to their children after their deaths. The new scheme would work in partnership with the Personal Care at Home bill, with the overall aim of enabling more people to be cared for at home whilst ensuring funds are available for residential care if it is needed.