Andy Burnham has been warned against scrapping the triple lock or imposing a “death tax” to pay for his social care plans. The Prime Minister insisted he is prepared to make unpopular choices and hike taxes to fund an NHS-style social care system, saying “nothing is off the table” to pay for the changes, including a levy on estates. The plans would be put to the public at the next general election.
Reform UK and campaigners oppose the plans
Reform UK's Treasury spokesman Robert Jenrick said: “Andy Burnham has yet again refused to rule out his universal death tax. He’s too weak to cut the sky-high benefits bill, so he’s coming for your home instead. It is an unfair, cruel levy on the people of this country, and it would make Britain the single-worst place in the Western world to hand down money to your kids.”
Mr Burnham's previous bid to reform social care when he was health secretary was branded a “death tax” because it would have been funded by a new levy on estates. The Tories argued that the eye-watering benefits bill should be cut to fund social care.
Shadow home secretary and ex-minister weigh in
Shadow home secretary Chris Philp said: “It looks like Andy Burnham is not prepared to make those difficult decisions, is not prepared to reduce the welfare budget that is totally out of control. Instead, he’s going to reach for tax increases that will simply cause even more damage to our economy.”
Sir Keir Starmer's former right-hand man Darren Jones suggested axing the triple lock in order to fund social care reforms. The policy sees the state pension rise every year by whichever is highest out of inflation, earnings and 2.5%, but critics argue it is unaffordable.
Triple lock under scrutiny
The ex-Cabinet minister told the BBC's Sunday with Laura Kuenssberg: “An interesting thought, maybe, the triple lock is very expensive in the years ahead and is of benefit to older people. If you're reallocating money to help older people in the social care system maybe there's some reform that can be made there.”
Pressed on if he would ditch the triple lock, Mr Jones added: “I think it's an option that the Government should consider alongside others. But I think you can't just keep taxing and spending more, and you can't just keep borrowing more so you're going to have to swap something out if you're going to start to put money in in this way.”
Campaigner Dennis Reed warned that getting rid of the triple lock would add to pressures on the NHS and social care. The Silver Voices director said: “Yet another sacked politician seeks to keep in the public eye by using poor pensioners as a punchbag. Increasing pensioner poverty would enhance the financial pressures on the NHS and social care and reduce older people's ability to contribute to a growing economy. If he stood up at Labour Party Conference to say these things he would be heard in stony silence.”
Mr Jenrick added: “Instead of choosing to cut the benefits bill, end foreign aid and stop net zero subsidies, Labour MPs want to scrap cut the state pension. Their priorities are all wrong. Reform will keep the triple lock and raise the tax-free personal allowance to £15,000 so it’s never taxed.”
Burnham's plans and context
Mr Burnham, whose father died with Alzheimer’s disease earlier this month, said he would “grasp the nettle” when it comes to tackling the social care crisis despite the potential unpopularity it would cause. He told the BBC’s Sunday With Laura Kuenssberg: “People are paying care charges now. They are spending tens of thousands of pounds from their savings, sometimes losing their homes. That is what’s happening at the moment. So to suggest there isn’t a cost to people at this moment in time, there’s a huge cost. Social care in England is as unfair as American healthcare, where the most vulnerable in society can lose everything, they can be wiped out, not just by the condition that they have, but wiped out financially.”
Asked if a levy on estates was one option he was considering, he said: “Nothing is off the table at this moment in time. Now that doesn’t mean that I’m going straight back to the proposal that I had in 2010.”
The Prime Minister has committed to Labour's 2024 manifesto pledges to keep the triple lock in place for the current parliament and not to increase income tax, VAT or national insurance for workers. There is ongoing speculation over an early general election, which is not due until 2029, despite Mr Burnham ruling out the move. Baroness Louise Casey is leading a review of social care which is due to be completed next year. A care service which, like the NHS, is free at the point of use could cost up to £18.5 billion a year in 2035/6, the Health Foundation think tank has estimated.
