Burnham Vows Free Social Care, Willing to Risk Political Capital

Prime Minister Andy Burnham has announced his intention to put a plan for free social care before the public at the next general election, stating he is prepared to risk his political future to enact the reforms. Burnham indicated that all options are on the table for funding these changes, including potential tax increases, to establish a social care system akin to the National Health Service (NHS).

"People are paying care charges now. They are spending tens of thousands of pounds from their savings, sometimes losing their homes," Burnham stated, emphasizing the current financial burden on individuals. He drew a parallel between social care in England and the American healthcare system, where he argued, "the most vulnerable in society can lose everything... wiped out financially."

Under the current system in England, individuals must deplete their assets and savings down to £23,250 before government funding for care home fees becomes available. According to the King's Fund, this threshold would be over £35,600 today if it had been adjusted for inflation since 2010-11.

Burnham is set to outline the general direction of his social care proposals in his upcoming Labour Party conference speech. He is committed to cross-party discussions to seek consensus, led by Baroness Louise Casey's review of social care.

The Prime Minister is currently constrained by Labour's manifesto commitments, which prohibit increases to income tax, VAT, or national insurance for workers. His prior attempt at reform as health secretary, which considered a levy on estates, was met with criticism and labeled a "death tax" by opponents.

Burnham did not rule out an estate levy as a potential funding source, but clarified it would not be a return to his 2010 proposal. He suggested that due to current parliamentary manifesto promises, significant reforms might be difficult to implement before the next election, slated for 2029. Therefore, he intends to present his comprehensive proposals to the electorate at that time.

The Health Foundation think tank has estimated that a social care service free at the point of use, similar to the NHS, could cost up to £18.5 billion annually by 2035/36. Burnham contested this figure, highlighting potential savings to the NHS from improved social care provision reducing the need for emergency treatments and hospital beds.

Opposition figures have voiced criticism. Shadow Home Secretary Chris Philp suggested welfare budget cuts as an alternative to tax increases. Reform's Treasury spokesman Robert Jenrick accused Burnham of being "too weak to cut the benefits bill" and warned of potential "death taxes" on homes. Liberal Democrat leader Sir Ed Davey expressed hope for serious action on care reform and encouraged Burnham to engage with cross-party talks already initiated.

In England, individuals requiring care home stays must typically sell their assets, including their homes, to fund their care until their remaining assets fall below the £23,250 threshold. For care received at home, the value of a person's house is excluded from the means test, but other assets must be depleted to a local council-determined level, not lower than £23,250. Scotland provides free personal care, while Wales and Northern Ireland have their own distinct systems for social care funding.

While the NHS can fund care based on health needs through 'NHS continuing healthcare,' the application process and assessment can be complex. There are exceptions to selling a home for care costs, such as if a spouse or certain other relatives continue to reside there.