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Pensioners facing tax rises to pay for care reforms

Jonathan Winston Jonathan Winston
1 min read
This blog is more than 15 years old

A specific tax for pensioners is one of the options to be considered as ministers contemplate finding an extra £25bn a year to pay for social care funding.

The Dilnot Commission announced its proposals yesterday which include capping the amount that individuals have to pay for their long term care at £35,000 with the state then paying for the remainder of their care costs.

The government has not given the plans a full endorsement amid concern in the Treasury about the costs of implementing the plan which would be expected to top £3.7bn by 2025, which is over and above the £22bn increase in costs due to the country’s ageing population.

One option that the commission identified would be for pensioners to pay for the increase through taxation with the possibility that national insurance contributions could be extended to over-65s who are still in employment.

Health Secretary Andrew Lansley told the House of Commons: “In the current public spending environment, we have to consider carefully the additional costs to the taxpayer of the Commission’s proposals against other funding priorities.” He added that the government hoped for a cross-party consensus on the issue.

https://www.independent.co.uk/news/uk/home-news/over65s-should-pay-national-insurance-2306960.html

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