Labour Considers 'Free' Social Care, Potentially Raising £18 Billion

Labour is considering a plan to provide free social care, a move that could cost the taxpayer an estimated £18 billion annually. The party is exploring funding options that include introducing a 10 percent inheritance tax, referred to as a 'death tax,' and potentially reforming or scrapping the pensions triple lock.

Prime Minister Andy Burnham, speaking at the Labour Party conference in Liverpool, stated his readiness to address the long-standing issue of social care funding. He described his proposal as a system where "everyone contributes, everyone is covered," aiming to create an NHS-style "national care service."

Experts have warned that making social care free at the point of use could lead to significant costs, comparable to a 2 pence increase in the basic rate of income tax. While Burnham indicated the final cost might be lower, he did not provide a specific figure. The potential for unpopular decisions to "rip the plaster off" a persistent problem was acknowledged by the Prime Minister.

Burnham cited the recent death of his father, who was in a care home with Alzheimer's, as a driving force behind his commitment to reform the social care system. He suggested that his plan would be presented to the public in Labour's next manifesto, fueling speculation about an early general election.

However, potential funding mechanisms have drawn criticism. Former Labour Cabinet minister Darren Jones suggested that reforms could involve changes to the expensive triple lock, which benefits older individuals, to reallocate funds towards social care. Government sources have indicated that scrapping the pensions triple lock is being considered as a measure to finance social care reforms.

Opposition parties have voiced strong objections. Reform UK's Treasury spokesman Robert Jenrick claimed Burnham was "too weak to cut the sky-high benefits bill, so he's coming for your home instead." The Conservatives have also stated they would not support tax rises for such a system, with Shadow Home Secretary Chris Philp suggesting that welfare budget cuts and other government spending reductions should be prioritized instead.

Burnham countered these criticisms by highlighting the substantial costs many families already incur for elderly care. He drew a parallel between England's social care system and American healthcare, where he suggested vulnerable individuals can face devastating financial losses.

The debate over social care funding occurs as the Work and Pensions Secretary, Pat McFadden, admitted that the welfare system is overly focused on benefits rather than employment support. He emphasized the need to assist people in finding work, particularly addressing the issue of one million young people not in education, employment, or training (NEETs).