Prime Minister Andy Burnham is targeting social care reform through a potential new death tax or higher income tax bills to fix funding shortages. Solving the nation's social care crisis remains one of Burnham's overriding missions. His father Roy is currently in a care home battling Alzheimer's.
Columnist Jeff Prestridge stated that Burnham has little chance of succeeding where previous ministers failed. Prestridge noted that the public will not support additional tax grabs after recent tax increases under Labour. Imposition of inheritance tax on unused pension funds and higher taxes on savings income will take effect next April.
Prestridge argued that Labour should leave wealth and income alone and tackle welfare spending, which has pushed national debt past £3 trillion. He said reducing welfare costs in the October Budget is necessary before putting in place a care system fit for purpose. Conservative leader Kemi Badenoch also prefers an approach that avoids imposing more taxes on wealth.
Prime Minister Burnham previously called the funding of social care a "dog's dinner." Since 1997, there have been 22 attempts to reform the system, all failing due to high costs or fierce public opposition. Burnham first attempted reform as Secretary of State for Health in 2009 by proposing a new levy on estates, but that death tax met hostility and was binned 17 years ago.
Care Costs and Regional Funding Disparities
Local councils currently lack the financial resources to pay for everyone eligible to receive free care. The asset threshold where individuals in England start paying for care remains at £23,250, unchanged since 2010. Northern Ireland maintains the same threshold, while Scotland and Wales set higher limits.
Individuals with assets worth £23,250 or more must pay their own care costs, which often requires selling property. Care bills average around £1,350 a week and run higher in the South East. Many people accumulate lifetime care costs exceeding £100,000.
The care funding system operates as a lottery across regions, with Scotland granting free personal care if local councils approve it. Columnist Rosie Murray-West recently highlighted horrible inconsistencies in how authorities assess people with complex healthcare needs such as dementia.
Care costs for complex healthcare needs should in theory be met by the NHS, but incorrect assessments cause most applicants to be rejected. Rachel Hutchings of healthcare think-tank the Nuffield Trust said access to this vital funding is "unfair and inconsistent."
Only one in four people are likely to need care, with many in that group handing over most of their wealth to fund it. The remaining 75 percent do not require or refuse care, choosing to live at home dependent on family support. Prestridge noted his mother Helen adopted this approach before spending her final days in a care home, where she died at age 88.
Independent Commission Review and Future Timeline
Burnham aims to introduce social care reform before 2029. He asked Baroness Casey, chairman of the Independent Commission on Adult Social Care, to speed up her report so it is published by the middle of next year.
An earlier report could allow Burnham to introduce stop-gap changes, such as following Scotland's lead in providing free personal care at home or in residential nursing homes. Broader reforms will have to wait until post-2029.
Prestridge insisted that no one should be stripped of their home or wealth to pay for care costs. He urged Burnham to make cutting welfare spending the starting point for funding any care reform.
