More than two-thirds of Brits support 'wealth tax' to fund social care

6 August 2018

More than two-thirds of Brits think a wealth tax that pays towards the cost of social care should be introduced, a new poll has revealed.

Coming in the wake of the Local Government Association’s (LGA) green paper on adult social care and well-being, a poll by pensions firm Aegon found that more than two thirds (68%) of people support the idea that the cost of care would be covered partly by the government and partly by them, should they need care.

Meanwhile, two thirds (66%) of Brits polled say they would support a specific wealth-related tax to fund care costs.

This wealth tax could come in the form of higher council tax for those living in more expensive properties says Aegon. Steven Cameron, pensions director at Aegon, explains: “There is strong support for the government to look beyond income tax, to taxes on wealth, as a means of raising extra funds. This could, for example, involve those with the most expensive homes paying higher council tax. This tends to be less favoured by older age groups, who will be the ones most likely to have accumulated wealth.”

More than half (54%) believe extra cash could be raised by asking those who work beyond state pension age to continue paying national insurance contributions (NICs). Currently, those who continue working in retirement are exempt from paying NICs.

While almost half (49%) favour the idea of a specific social care levy, only two in five (39%) like the idea of everyone who pays income tax paying more tax.

However, just under half (48%) support the idea of workers paying extra income tax or NICs. When asked how much more tax they would be prepared to pay, almost three-quarters say they are willing to pay up to 3% extra.

Mr Cameron adds: “It’s likely that the government will need to design a package of different measures to fill the social care funding gap. The really tricky bit is how to shape and ‘sell’ a package of tax increases, which will be seen as fair across generations of voters and across those with different income and wealth levels.”

Responses to possible fund-raising measures

TaxAgreeDisagreeDon't know
Wealth-related tax rather than income tax66%28%6%
Remove NICs exemption for those working beyond state pension age54%38%8%
Social care levy49%26%24%
An employer contribution49%37%13%
More income tax or NICs, working population only48%42%10%
More income tax for all39%51%10%

Source: Aegon, June 2018


In reply to by anonymous_stub (not verified)

How about we go back to the days when we paid tax on all savings interest above our tax free allowance, stop the tax free ISA's both cash and investment types, that may encourage the government & BoE to increase interest rates to get more tax.

In reply to by anonymous_stub (not verified)

Owning a nice property doesn't always mean a person has loads of money and a huge amount already goes on council tax each month.. For an average elderly retired person their savings are dwindling rapidly and unlikeworking people we have no way of topping up our savings. A tax on the wealthy is okay in theory but taxes havea nasty way of spreading to everyone in between.

In reply to by anonymous_stub (not verified)

As an add on to my earlier comments about the 66% of responses if favour if a wealth tax in the form of higher council taxes in relation to the value of houses , what if often forgotten or ignored is the simple fact that the value of ones house is not indicative of their wealth once such case that came to my attention recently was of an actress who's name I do not recall, She bought her house in inner London in the 1960s for a relatively small sum but because of the meteoric price rises in the area now lives in a house valued in excess of 1 million pounds, therefore she is liable for the ludicrous taxes imposed by councils on property in that bracket. She has been forced to give up her home because she can no longer afford to pay the council tax. As I said in my previous comment I live in a four bedroom house but I have that house not because I am particularly wealthy but because of the simple fact that during my working life I decided to spend my earnings on my home rather than expensive exotic holidays, fancy cars, etc. the truth of the matter is that just because someone lives in a valuable house that does not make them wealthy and able to pay more for to fund care costs.

In reply to by anonymous_stub (not verified)

I see that 66% of the vote is in favour if a wealth related tax to fund care costs, that tax coming in the form of higher council tax, I totally disagree bearing in mind what council tax is collected for in the first place (services provided by our local government , ie waste collection, libraries, swimming pools, sports halls community police and all of the other services our councils provide). I live alone in a four bedroom house which I worked very very hard for but that does not make me more wealthy than Jo Blogs in the next street to me living in his three bedroom semi with a wife and two children, I very much resent the fact that I have to pay more money to have my bin emptied or to use the local amenities than the said Jo Blogs after all when I go to my local supermarket they do not base the cost of my shopping on the house in which I live. Many years ago the Tory party introduced a Poll tax based on the individual not on the value of a house, a much fairer and just method of collecting local taxes than the present one maybe it is time for such a tax to be reconsidered. Just as an after thought I recall that 20 or so years ago I lived in a three bedroom semi with my wife and child whilst friends of ours lived in a three bedroom terraced house, we were of the same age and in the same income bracket yet my wife and I had to pay double the amount in council tax, how anyone can say this is justified I do not know, this is why I believe that the present method of collecting local taxes is very unfair and that any increase in taxation due to the value in ones house would be tantamount to legalised robbery.

In reply to by anonymous_stub (not verified)

I think these polls are frankly worthless. If we are honest, most of us would support raising money by long as it's taxing somebody else and not me!

In reply to by anonymous_stub (not verified)

Social care costs should be covered by increased income tax and NIC's, why should the better off earning over about £43K only pay 2% NIC instead of full 12%, the 12% should be paid on all income. I the 60's we paid over £40% basic rate income tax to provide facilities for the future generations to enjoy but now the young object to such ideas, the young are richer today than we were then so can afford it. As for the Idea of everyone paying a lump sum at 40 to government only a few would be paying it from their savings or property sale when dead so all those who have lived it up and not saved or bought property get away with everything free as usual. I prefer that I am allowed euthanasia when I can't manage to live in my own home, if any minor care needed everyone who paid in should be treat equal and not just give everything free to those who have never contributed a penny to the system, I also apply this to those on GPC who get same pension as those who contributed in full, they only get it reduced if they earn extra, have a anther pension or savings over £10K, and many do not declare extra income or pension and put savings in kids names to avoid any reduction. These people should be checked every year as I know of persons cheating the system, they also get many extra benefits included that thos drawing standard pansion they contributed for don't get, pays to be a scrounger in this country.

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