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National politics

How not to pay for social care

In today’s Guardian it is suggested that the government is considering a £20,000 levy on estates to pay for social care. This is just another unfair Labour tax which looks like simple confiscation compared to the Tories’ proposals for a voluntary national scheme that allows people to pay a one off premium of £8,000 to pay for social care when they retire. Labour really have no idea beyond grab, grab, grab.

According to Shadow Chief Secretary to the Treasury, Philip Hammond:

Gordon Brown has a track record of saying ‘no new taxes’ before an election, and then raising them by stealth after it. Labour are now secretly planning another tax – a death tax – to pay for this unfunded, ill-thought out plan for social care. When you die, a Labour Government would take £20,000 from what you leave to your children and family. For those with the most modest savings Labour’s plans could leave them with nothing. In contrast we want to help people in old age so that they can leave as much of their lifetime’s savings as possible to the next generation. We will offer people the chance to pay a one off premium of £8,000 into a voluntary scheme to cover the cost of residential care in old age. So under our plans no-one would be forced to sell their home to pay for care.

3 replies on “How not to pay for social care”

George,

No, this policy is for care in residential care homes as well.

If you have not got the readies then you would be a charge on your local social services as you are now. This is paid for by a wide tax base so those that do not make provision for themselves get a sub from everyone.

The Labour scheme has entirely predictable “unforeseen consequences”. It will ensure that more and more people fail to save because the consequence of the scheme will be that thrift is punished by taxation (£20,000) and those that spend, spend, spend will be rewarded with free social care.

Making those that save pay for their contemporaries that don’t is just plain unfair.

Phil, Thank you.

I think I would like to see the details of the Tory idea, as a bland downpayment is not going to come without some sort of strings. Funding 35K a year in residential is a very large drain. Is there a Tory detailed document or this headline stuff at the moment?
The policy needs to be on the table in black and white. Poll figures are tightening as they so often do on an election approach, and the media seems to be painting a strong perception of Cameron changing his mind.

Thanks

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