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premium’ to fund elderly care
Wednesday, June 27, 2018 –
6:18am
A powerful group of MPs has called for the introduction of a new
tax for over-40s, in a bid to secure funding for elderly care.
The call for a “social care premium” came in a rare joint report
by the Housing, Communities and Local Government and Health and
Social Care Committees, which described the current system as
“unsustainable”.
“We can no longer delay finding a fair and sustainable
settlement for social care,” Sarah Wollaston, chair of the Health
and Social Care Committee, said.
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“Too many people are being left without the care and support
they need and it is time for a decision to be made about how the
costs are shared,” she continued.
Is the tax necessary?
The aim of the proposal is to ensure that the “personal
elements” of social care, such as help with eating, dressing and
washing, are available for free for the elderly, whether they
receive that assistance at home or an aged care facility.
The proposal “echoes the funding of social care in Japan, which
has the highest proportion of older people of any country”,
the Times says.
The Independent reports that the fund could
either “operate as an additional element of national insurance or
through a separate mechanism, as happens in Germany”.
How would it work?
Under the cross-party proposal, payments would begin once a
person turns 40 and continue beyond the age of 65, with the value
of pensions and investments taken into account.
However, the report says that a minimum earnings threshold
should be in place for the protection of low-income earners.
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