A powerful group of MPs has called for the introduction of a new tax for over-40s, in a bid to secure funding for elderly care.
The call for a “social care premium” came in a rare joint report by the Housing, Communities and Local Government and Health and Social Care Committees, which described the current system as “unsustainable”.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
“Too many people are being left without the care and support they need and it is time for a decision to be made about how the costs are shared,” she continued.
Is the tax necessary?
The aim of the proposal is to ensure that the “personal elements” of social care, such as help with eating, dressing and washing, are available for free for the elderly, whether they receive that assistance at home or an aged care facility.
The proposal “echoes the funding of social care in Japan, which has the highest proportion of older people of any country”, the Times says.
The Independent reports that the fund could either “operate as an additional element of national insurance or through a separate mechanism, as happens in Germany”.
How would it work?
Under the cross-party proposal, payments would begin once a person turns 40 and continue beyond the age of 65, with the value of pensions and investments taken into account.
However, the report says that a minimum earnings threshold should be in place for the protection of low-income earners.
-
Will California’s Proposition 50 kill gerrymandering reform?Talking Points Or is opposing Trump the greater priority for voters?
-
‘The trickle of shutdowns could soon become a flood’Instant Opinion Opinion, comment and editorials of the day
-
Wikipedia: Is ‘neutrality’ still possible?Feature Wikipedia struggles to stay neutral as conservatives accuse the site of being left-leaning
-
Is duty-free shopping worth it?the explainer How to determine whether you are actually getting a good deal
-
What the 2025 Autumn Budget could mean for your walletThe Explainer Chancellor Rachel Reeves will reveal her latest plan to balance the nation’s finances in November
-
What taxes do you pay on a home sale?The Explainer Some people — though not many — will need to pay capital gains taxes upon selling their home
-
Clean energy tax credits are going away. Here's how to get them before it's too late.The Explainer Trump's recently passed megabill promises the early demise of clean energy tax credits
-
How will the new tax deductions on auto loans work?the explainer Trump's One Big Beautiful Bill Act introduced a tax deduction on auto loan interest — but eligibility for the tax break is limited
-
8 ways Trump's bill will change your taxesThe Explainer The 'big beautiful bill' was recently signed into law. Here's what it might mean for your wallet.
-
Who has to pay the estate tax?the explainer Trump's new bill will permanently shift who owes federal estate tax
-
How quarterly estimated tax payments work and when they are dueThe Explainer Freelancers, small business owners and those with a side hustle may need to make more frequent tax payments
