Andy Burnham, the incoming Prime Minister, is facing scrutiny over his past and potential future support for a 'death tax' to fund social care. Burnham has repeatedly advocated for a levy on estates to finance social care, a proposal he first put forward in 2010 when he was Health Secretary. At that time, he suggested a 10 percent deduction from the property of deceased individuals to establish a "national care service." This idea was criticized as a "death tax" by the Conservative party and was not implemented after Labour lost the May 2010 general election.
Burnham has continued to raise the prospect of such a tax for social care funding, stating in May that he did not "resile" from the proposal. His recent comments, made shortly before his formal appointment as Labour leader, have reignited concerns about potential new tax measures under his leadership. Shadow Exchequer Secretary James Wild criticized Burnham, stating, "Burnham has not done the hard work to put together a serious plan for Government and because of that he will do what Labour always do: raise taxes." Wild added, "The leader may have changed but this is the same old Labour. They want more tax rises to pay for benefits and grow the state."
The high cost of social care currently forces some individuals to sell their homes. Under existing rules, those with savings exceeding £23,250 are not eligible for council assistance with care costs.
When questioned about funding his social care reform plans and the possibility of a "death levy," Burnham indicated that he would "look at the options as to how you make a universal social care system" and that "We'll come to those options in due course." He spoke emotionally about his personal experience with the social care system, noting that his father has Alzheimer's, and acknowledged that an overhaul "would require something difficult." Burnham expressed a belief that the British public would prefer transparency about the system's shortcomings.
"My dad has Alzheimer's and you see what the staff have to put up with. It's not their fault, the system's broken. You can't leave social care like this," Burnham said. Addressing the fairness of current care payments, he stated, "People are paying for care in the most unfair way. The more vulnerable you are, the more you end up paying." He further remarked, "That's the worst of all worlds and people lose everything that they'd worked for." In May, Burnham suggested, "There's a great resentment about inheritance tax so take that away, perhaps, and look at a care levy."
Burnham is also planning a tour of Britain next month to emphasize his commitment to governing across the entire country, not just the North. Allies have expressed concern that his frequent references to Manchester could alienate voters in the South. In his speech upon becoming Labour leader, he asserted, "I will be a leader for the North, the South, the East and the West. For Scotland, Wales and for Northern Ireland."