The UK government is reportedly speeding up its review of the social care system, with a potential announcement on reforms and funding expected within weeks. Prime Minister Andy Burnham is said to be willing to dedicate significant political effort to addressing the sector's challenges.
Baroness Louise Casey is leading an independent commission tasked with presenting options to reform and fund adult social care. While the commission's final report is not due until 2028, its findings could be brought forward to as early as next year, according to The Guardian.
Burnham reportedly plans to accelerate the timeline for a new social care service and is giving Baroness Casey the latitude to explore various funding avenues, including new taxes or a social insurance model. This potential acceleration has drawn criticism from Conservatives, who have warned of a possible "punitive death tax" being introduced.
When asked about the possibility of a "death tax" funding social care, Baroness Casey stated that "everything is on the table." Burnham has previously advocated for a "levy on all estates" to fund social care, a proposal first made over 16 years ago when he served as health secretary. At that time, he suggested a 10 percent levy on the property of deceased individuals to support social care costs.
Unlike healthcare provided by the National Health Service (NHS), social care in England and Northern Ireland is not free at the point of use. Individuals with assets or savings exceeding £23,250 typically do not qualify for state-funded care, often leading to people being required to sell their homes to cover costs.
A new social care levy, while potentially ending the need for home sales, could introduce a charge on estates. This could mean that many Britons whose estates were previously not large enough to incur inheritance tax might face a new form of tax on their assets upon death.