MPs suggest a new tax for the over-40s for old age care

Topics covered: Ridouts professional advice

To help pay for elderly care for all, MPs have said a new tax for the over-40s should be introduced in England.  Two influential House of Commons’ committees have suggested retired people should also pay if they have lucrative pensions or investments.

MPs have labelled it the ‘social care premium’ and it comes as ministers consider the reform of social care in England. Suggestions have also been made that employers should contribute to the social care premium and that there could be an extra levy on inheritance tax on the wealthiest estates.

The aim is for everyone to have their care paid for, although those in care homes would still have to contribute towards their accommodation costs.

Caroline Abrahams, of Age UK, said:-

She said while the idea of paying more was a “bitter pill, it just might be one worth swallowing – but only for a system that we can all rely on.”

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