By Lucy Phillips
30 March 2010
A compulsory levy to fund a new £3.6bn national care service for the elderly should be introduced, according to government plans announced today.
Labour’s long-awaited white paper on social care reform in England, launched by Health Secretary Andy Burnham, pledges a ‘comprehensive’ care service that was based on need rather than ability to pay. It will be funded by a combination of state and individual contributions and introduced in three stages. But decisions about how much and when people pay have been delayed until after the general election, likely to be held on May 6.
An independent all-party commission will be set up to look at the funding options available, including allowing people to defer their state pension, to pay by instalments or through an upfront sum.
In a surprise move that appeared to contradict a statement made by Chancellor Alistair Darling on March 29, Burnham said a compulsory levy on people’s estates after they have died, dubbed a ‘death tax’ by the Tories, had not been vetoed. Speaking at the launch of the blueprint, he said: ‘All options would be within scope when they [the commission] make their deliberations, although we will not introduce any change within the next Parliament.’
Burnham branded the reform ‘bold and ambitious’ and said it represented the biggest change to the welfare state since the creation of the NHS in 1948. ‘The worst of all worlds would be to leave in place the current system, which is essentially a dementia tax where people pay according to their vulnerability,’ he added.
The government ruled out a voluntary insurance option, as favoured by the Conservatives, or a fully tax-funded service, branding them unaffordable.
Delivering the £670m Personal Care at Home Bill, expected to be approved by Parliament this evening, makes up the first part of Labour’s reforms. The second stage, from 2014, will see free care extended to everyone who is in residential care for more than two years. This will cost £800m, funded by a freeze in the inheritance tax threshold announced in last week’s Budget. The roll-out of the national care service will form the final phase after 2015.
Burnham denied accusations that reform was being kicked into the long grass. ‘Rome was not built in a day. We are undertaking a massive reform here... If I’m being honest there is the need for a longer debate for people on how to make a contribution. A compulsory comprehensive approach is the only way to bring down costs so that everyone can find them affordable,’ he said.
But the NHS Confederation called for greater urgency in making changes. ‘We have significant concerns about the further delays in implementing a long-term solution. What is absolutely vital is that the opportunity presented by a cross-party commission after the election is taken and that there is no loss of momentum on this issue,’ said chief executive Steve Barnett.
Dame Margaret Eaton, chair of the Local Government Association, added: ‘There is no getting away from the difficult question of exactly how a future system of care will be paid for. Both central and local government need to work together to come up with a formula that the country and individual taxpayers will be happy with.’
30 March 2010
A compulsory levy to fund a new £3.6bn national care service for the elderly should be introduced, according to government plans announced today.
Labour’s long-awaited white paper on social care reform in England, launched by Health Secretary Andy Burnham, pledges a ‘comprehensive’ care service that was based on need rather than ability to pay. It will be funded by a combination of state and individual contributions and introduced in three stages. But decisions about how much and when people pay have been delayed until after the general election, likely to be held on May 6.
An independent all-party commission will be set up to look at the funding options available, including allowing people to defer their state pension, to pay by instalments or through an upfront sum.
In a surprise move that appeared to contradict a statement made by Chancellor Alistair Darling on March 29, Burnham said a compulsory levy on people’s estates after they have died, dubbed a ‘death tax’ by the Tories, had not been vetoed. Speaking at the launch of the blueprint, he said: ‘All options would be within scope when they [the commission] make their deliberations, although we will not introduce any change within the next Parliament.’
Burnham branded the reform ‘bold and ambitious’ and said it represented the biggest change to the welfare state since the creation of the NHS in 1948. ‘The worst of all worlds would be to leave in place the current system, which is essentially a dementia tax where people pay according to their vulnerability,’ he added.
The government ruled out a voluntary insurance option, as favoured by the Conservatives, or a fully tax-funded service, branding them unaffordable.
Delivering the £670m Personal Care at Home Bill, expected to be approved by Parliament this evening, makes up the first part of Labour’s reforms. The second stage, from 2014, will see free care extended to everyone who is in residential care for more than two years. This will cost £800m, funded by a freeze in the inheritance tax threshold announced in last week’s Budget. The roll-out of the national care service will form the final phase after 2015.
Burnham denied accusations that reform was being kicked into the long grass. ‘Rome was not built in a day. We are undertaking a massive reform here... If I’m being honest there is the need for a longer debate for people on how to make a contribution. A compulsory comprehensive approach is the only way to bring down costs so that everyone can find them affordable,’ he said.
But the NHS Confederation called for greater urgency in making changes. ‘We have significant concerns about the further delays in implementing a long-term solution. What is absolutely vital is that the opportunity presented by a cross-party commission after the election is taken and that there is no loss of momentum on this issue,’ said chief executive Steve Barnett.
Dame Margaret Eaton, chair of the Local Government Association, added: ‘There is no getting away from the difficult question of exactly how a future system of care will be paid for. Both central and local government need to work together to come up with a formula that the country and individual taxpayers will be happy with.’
