Prime Minister Andy Burnham has initiated a new effort to reform the social care system in England and Wales, addressing the growing needs of an aging population. Official figures reveal a substantial rise in the number of people living into their 90s, presenting a significant challenge for social care funding and provision.
The number of individuals aged 90 and over has surged by 54 percent over the past two decades, reaching approximately 580,000 in 2025. The population of centenarians has also seen a dramatic increase, rising by 90 percent to around 15,000 over the same period, according to data from the Office for National Statistics.
In a speech delivered at a London care home, Burnham acknowledged the failures of previous governments in managing the care system. He expressed a commitment to finding political consensus and public support for future delivery and funding models. Burnham highlighted issues such as strain on the National Health Service (NHS), concerns about profit-driven practices, inconsistent standards within the sector, and a funding system that can deplete family assets, including properties, to cover care costs.
Burnham has previously suggested a 10 percent 'death tax' on estates as a potential funding source for social care. He indicated a willingness to collaborate with Conservative and Liberal Democrat parties, emphasizing a readiness for compromise. While not ruling out tax increases or warning of difficult decisions ahead, he stated his intent to focus on substantive reform rather than political point-scoring.
As part of his plan, Burnham has asked Baroness Louise Casey to expedite her care review to summer 2027. This review will explore the establishment of a 'National Care Service' intended to operate in parallel with the NHS. Burnham also mentioned preliminary discussions with the Conservative and Liberal Democrat parties.
Current Social Care Funding Landscape
Under the current system in England, individuals requiring residential care must use their own funds and deplete their assets, including their home, down to £23,250 before becoming eligible for state assistance with care fees. For home-based care, assets must be reduced to a council-determined level, which cannot be below £23,250, though the value of a person's home is excluded from this assessment.
Differences exist across the United Kingdom. Scotland provides free personal care. Wales operates a means-tested system with potential weekly charges for non-residential care, while Northern Ireland has its own distinct regulations.
The NHS can fund care based on specific health needs, but the application process for 'NHS continuing healthcare' is often described as complex and bureaucratic. Homeowners are protected from selling their property to fund care if a spouse or certain other individuals, such as relatives over 60 or under 18, continue to reside there.
Experts note the significant financial burden faced by families. Lucie Spencer, a partner at wealth manager Evelyn Partners, commented that the increasing number of individuals in the over-90 age group underscores the challenge. She noted that many clients are concerned about care home fees eroding their savings, pensions, and legacies, potentially forcing property sales. It is estimated that about one in seven individuals aged 65 will incur lifetime care costs exceeding £100,000.
The Nuffield Trust, an independent health think-tank, supported Burnham's initiative to convene a national discussion on social care, stating that the current situation is unacceptable. The Trust pointed to Germany and Japan as examples where significant reforms were achieved through public backing.
Maike Currie, vice president for personal finance at PensionBee, highlighted that the increase in longevity necessitates a reevaluation of retirement planning. With a shift away from defined benefit pensions towards defined contribution plans, individuals bear more responsibility for ensuring their savings last throughout longer lifespans.