MPs call for social care tax for over-40s

Published by Edmund Greaves on 27 June 2018.
Last updated on 27 June 2018

MPs call for social care tax for over 40s

Taxpayers aged over 40 should pay a new ‘social care premium’ to fund care costs, two parliamentary committees have said.

The Housing, Communities and Local Government and Health and Social Care Committees' joint report calls for an increase in national insurance or a specific ring-fenced premium to pay for social care.

This premium would be paid for by taxpayers aged over 40s only, as well as by employers.

The committees say that the growing demand for adult social care means reform of the current system is critical. The report slams the current situation as “not fit to respond to the demographic trends of the future” and under “very great and unsustainable strain”.

The government is set to deliver a green paper on this issue in the autumn. It is estimated that in the next financial year there will be a £2.5 billion funding gap for social care.

Clive Betts MP, chair of the Housing, Communities and Local Government Committee, comments: "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. While we have set out steps to ease the financial pressure on local authorities delivering the service, reforms at a local level will not be enough if we are to rise to the challenge of providing high-quality care for all those that need it.

“We heard during the inquiry that people would be willing to pay more if there was an absolute guarantee that the extra money would go on social care. 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.

“The government must also consider social care in its wider context and ensure a proper joined up approach with other services such as public health and housing."

‘Doing nothing cannot be an option’

Sarah Wollaston MP, chair of the Health and Social Care Committee, adds: "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.

This report from MPs across the political spectrum also draws on the informed views of a Citizens’ Assembly in setting out our recommendations to government. Doing nothing cannot be an option." 


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This might sound OK in

This might sound OK in principle, but I cannot imagine any government (whichever party) actually ring-fencing the extra funds collected to provide the finances needed, either for current or future needs.

The first change that needs to be made is to bring back the social care system into the public domain instead of allowing private businesses to rip us all off with extortionate care home fees that used to be substantially less when run by the public sector.

Seems yet more disincentive

Seems yet more disincentive to do well for yourself. I've not paid off my student loans yet, can't afford to save for a mortgage and yet they want to put more onus on me as an over 40. They conveniently forget those of us without kids have already paid in far more than has been taken out by us.

Many people who need 'health'

Many people who need 'health' care (and their relatives) are told they only need 'social' care. Anyone who has done battle with the NHS over the funding of ongoing health care for an elderly person will know this. Many people in the care system should not be there at all and should be being funded by the NHS. This is a major part of this issue and not mentioned here.

Is this extra taxation to be

Is this extra taxation to be in place of the 50%+ surcharges applied to care home fees by local authorities for anyone with any assets? Thought not. I wonder if the "auto enroll" pensions are to make sure there are decent pension pots in the future for politicians to raid. I would also classify keeping the bank rate at well below inflation as a (not very well) hidden tax on anyone with savings.

If Mp's push this idea of

If Mp's push this idea of taxing everybody over 40 ore for social care I feel that would be like charging people like me for allowing most of my familly to die young. My grad father died at 69 after carying a first world war bullet for many years which moved and cause him a coronary thrombosis. He was one of the ones who got no pay for years whils he was away in the war. He also got zero support until he died. That was in 1964. But htere have been very few improvements for many families. My mother was ignored by her doctor for more than 12 years with serioulsy nasty headaches unitl in 1982 she had a massive seizure and had to have a scan. he had a pituitary rumour the size os a duck egg removed and her brain scarred in the process. when she came home we had NO SUPPORT ALL, until she went into a coma after a cold, she was supposed to have regular nure reviews of her medication, she never got one and she was not getting enough cortizone. She died at the age of 58 after 9 years of awful symptoms. My father died of an asbestos related tumour in his lung but we were told because they listed the tumour by it's bilogical name not calling asbetosis there would be no compensation, he was 66. My brother died in december 2016 from a GLOBLASTOMA MULTIFORME, BRAIN CANCER, he was 53 and was offered no treatment of nay kind and there was zero support. The hospital socila services, after his terminal diagnosis, even threatened to charge us for the bed becaue he was too well to be in hospital. He died at 53, 14.5 weeks after his first symptoms. If Get taxed on rubbish pay now at the age of 60 after way we have been treated I will start the world's biggest petition.

Why not Tax the MP's and the

Why not Tax the MP's and the Committee who comes with these ideas?

Everyone should pay more

Everyone should pay more taxes if they want better services.Too many people want a great NHS and
improved social care but want someone else to pay for it.

No they don’t, they want the

No they don’t, they want the money we pay in Taxes and National Insurance to pay for it. Unfortunately much of that money is paid out in benefits to those who don’t deserve it, in the form of foreign aid to Countries who misuse it and to pet projects and schemes thought up by MP’s and the like.

As a 64 year old male who

As a 64 year old male who retired with a private pension 5 years ago, I agree that the over 40's should pay an additional tax to cover the cost of our possible Care costs. However, the cost needs to be reasonable and the cash raised needs to be ring fenced so that it is not syphoned off for other Government costs.

Surely if your going to

Surely if your going to introduce a Social Care tax then everyone should chip in if they already pay tax. I can't see the point in starting to pay it from age 40 onwards, it's not as if it will be used to pay for your own care in your own old age.

We certainly need a

We certainly need a significant reform of the social care sector, not just to cover care for the elderly, and this will necessitate increased expenditure. We also need to ensure closer integration of care provision between the health service, local authority responsibilities for social care and the housing sector.
Merging income tax with national insurance requirements would be a significant first step towards provision for meeting future needs. We will, however, certainly require increased taxation to meet these needs and if this were dedicated to health and social care I and, I am sure, many others would be happy to pay.

I would support such an idea

I would support such an idea subject to
1 a guarantee that this will not go the way of Road Fund and Social Security into the general coffers
2 The sums already added to council tax will be removed
3 The funds are administered by an independent body

You will appreciate I am cycnical. Too many stealth taxes have appeared in my lifetime and I have little trust in a broken political system.

You are absolutely right

You are absolutely right except for the independent body who will want lots of money and not be accountable. Look at all our CEO’s of Hospital Trusts who get paid an enormous salary and then on top of it they get a bonus, their salary is for doing a job, why pay a bonus just for doing their job.

Undoubtedly, social care is

Undoubtedly, social care is an urgent and growing concern for the Nation, However, MP's ,with their protected £1million pensions,are always coming up with ways to incite and upset the population.The idea of dividing to rule the elctorate seems to be at the forefront of this problem as middle aged people haver already made significant tax contributions during their working lives, while new additions to the workforce have had their dreams of home ownership shattered by rocketing house prices coupled with crippling education fees and pensioners are cast as demons living lives of luxury from their vast state funded pensions.This country is no longer a world power and should stop wasting money on armaments and participating in various US lead wars ,instead using the cash to make everyone's lives a little easier by cutting our stringing cuts and investing in education, healthcare and infrastructure.Why not impose a social tax on bankers to solve the health care shortfall as the Government baled out the banks in 2008 and since then banks have continued to make vast profits but have failed to return much of the essential financial support they required to survive back to the government's coffers!

I do think most people would

I do think most people would be willing to pay a bit more if it definitely went to where it is supposed to go, not like Road Tax, who knows where that goes.
I'm sure it would be auditable to show people where it was going although all figures can be manipulated

WHAT!!!!!!!!!!!!!! I have

WHAT!!!!!!!!!!!!!! I have worked full time since I was 17, AND PAID FULL STAMP AND TAXES, on the understanding I would retire at 60 and that the funds I paid in had contributed towards my pension. THEN THE FLAMING GOVERNMENT MOVED THE GOALPOSTS AND FORCED ME TO WORK AN EXTRA 6 YEARS - STILL PAYING FULL STAMP AND TAXES, despite the fact that I have more than paid my contributions for my Pension. NOW YOU WANT MORE MONEY OFF ME - YOU FAT SLOBS SITTING ON YOUR BACKSIDE GET WAY TOO MUCH TAX PAYERS MONEY - TAKE A PAY CUT, TAKE AN EXPENSES CUT AND LET THAT FUND THE NECESSARY DEFICIT - YOU CAN AFFORD IT - I CANNOT! Get rid of your second homes, your second cars, your big cars, all the flaming assistants, start doing a 40 hour a week, 48 week year AND GET A GRASP ON THE REALITY OF TODAY

A sound idea, but ONLY if

A sound idea, but ONLY if EVERYONE actually contributes....the scroungers, free loaders and 'cash in hand' merchants will as ever be at the front of the queue with both hands outstretched for whatever they can lay their hands on in the form of handouts, without actualy having paid a penny to be 'in the club' and, no doubt as ever when the silent majority try to make a stand against them 'collecting' the bottomless pit of 'do gooders' will see to it they get an unjustified look in !

Tax the over 40's because

Tax the over 40's because they can afford it, is simplistic and superficial at best and down right undemocratic, unfair and rather rich coming from the likes of Clive Betts MP. The Labour party spent all our money and lots more beside on it's pet projects whilst leaving social care out of the lavish spending seen elsewhere by Labour under his watch. He now calls for extra taxes to solve the problem he helped to create, shame on him and others thinking in this socialistically undemocratic way. Sarah Wollaston MP as a conservative should be asking the question of why we can commit to spending money on getting involved in conflicts like Syria instead of looking after our own people and their social care needs.

why should tax payers be hit

why should tax payers be hit for everything. Care homes are expensive yes, but people who have never worked and not p;aid any taxes are looked after for free all their lives.Get benefits sorted out then ask the workers to pay more tax but why should we work all our lives and still have to pay over the top in carehomes. Get to the root of the problem before you put taxes up.

Absolutely vital that the

Absolutely vital that the whole structure of care for the elderly is overhauled. If middle aged people stop to think of the future that is waiting for them as things are at present, with the lack of care for most people in their latter years, they should have no hesitation in signing up for a scheme which will guarantee a fair standard of living for them in their final years. The sooner such a scheme is put in place the better and this government should make it plain to the population that
the money cannot just come from thin air, they must play their part and they will get the benefit