The Government has insisted there are “no plans” to resurrect a so-called “death tax” to fund reform of adult social care. Prime Minister Andy Burnham is expected to give more detail on his Government’s plans for social care in a speech on Wednesday.
Background of the Levy Proposal
As health secretary in 2010, Mr Burnham had suggested a levy to pay for the then-Labour government’s proposed national care service could take 10% off people’s estates after they died. However, the plans were scuppered by the Conservatives, who accused Labour of levying a “death tax” to pay for their proposed new care service.
The Labour leader was on Monday asked about how his reforms now that he is Prime Minister would be funded, and was accused of failing to rule such a levy out.
Government Spokesperson's Statement
Asked about the reports, a Government spokesperson said: “There are no plans for this. Fixing our social care system will require building a broad consensus. The old way of doing politics has held up social care reform for decades. Our immediate focus is on working together to find common ground and deliver the reforms needed to fix the future of social care – not imposing one particular solution or tax.”
Tory leader Kemi Badenoch has written to Mr Burnham to challenge him to rule out tax rises or increased borrowing to pay for social care reform. Mr Burnham, in his first speech as Labour leader earlier this month, namechecked social care as an issue long neglected and that we must “have the courage to fix”.
Casey Commission on Social Care
Under Sir Keir Starmer, a commission into social care headed up by Baroness Louise Casey was announced in early January 2025, and formally began a few months later in April. While its first report, with short-term recommendations, is expected this autumn, the second phase, making long-term recommendations for the sector, was given a deadline of reporting by 2028.
But Baroness Casey, speaking to a committee of MPs last month, indicated the overall work might be completed sooner. Asked by the Health and Social Care committee if she would be able to expedite the process if that was something Mr Burnham wanted, she said: “Yes.”
Baroness Casey has previously noted there have been no fewer than 22 attempts since 1997 at reforming the sector – none of which she said had “fixed the foundations”. She also told MPs her interim report later will suggest some “quite big” changes to a system she has described as “patched together” and which too often creates “agony and uncertainty” for people at the most vulnerable points in their lives.
