You are here: Home - Household Bills - News -

Over 40s should pay new tax to cover social care costs, say MPs

0
Written by:
27/06/2018
The over 40s should pay a new tax to meet the cost of elderly social care, a group of MPs say.

A cross-party report from the housing, communities and local government, and health and social care committees described the current social care system as being under “unsustainable strain”.

It said action needed to be taken to plug a £2.5bn funding gap.

The MPs called for the introduction of a ‘Social Care Premium’ either as an additional element of National Insurance or with the premium paid into dedicated not-for-profit social insurance fund.

They said a minimum earnings threshold should be set to protect people on lower incomes but pensions and investments should be included in contribution calculations.

Clive Betts MP, chair of the housing, communities and local government committee, said: “The social care system is in a critical condition and there is an urgent need for more funding both now and in the future to ensure people are properly looked after.

“Given the huge funding gulf, the government should now take the opportunity to build both a political and public consensus around the need for a new Social Care Premium to secure a fair and sustainable system in the long-term.”

Sarah Wollaston MP, chair of the health and social care committee, said: “We can no longer delay finding a fair and sustainable settlement for social care. Too many people are being left without the care and support they need and it is time for decisions to be made about how the costs are shared.”

Related: See YourMoney.com’s How to pay care home fees for more information.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • Discover how your pension can be used to make a range of investments with attractive tax advantages. By… https://t.co/LMSAsBt3hb
  • RT @Defaqto: Looking for your first job? We outline our top tips for understanding and improving your credit score. Take a look @YourMoney
  • @YourMoneyUK Biased. People don't look at this stuff rationally. They also would not buy annuities if there ware decent alternatives.

Read previous post:
Ofgem extends ban on Iresa acquiring new customers

The energy regulator has extended its ban on small energy supplier Iresa taking on new customers after the firm failed...

Close