Prime Minister Considers Funding National Care Service Through Tax Reforms

Andy Burnham stated he will campaign in the next election on a pledge to increase taxes to fund a national care service, which he describes as 'free' social care. Speaking at the Labour Party conference in Liverpool, the Prime Minister expressed his readiness to find the necessary funding for an NHS-style national care service. Experts estimate that providing free social care could cost approximately £18 billion annually, equivalent to an increase of 2p on the basic rate of income tax. While Mr. Burnham believes the final cost will be lower, he did not specify a figure for his plans. The Prime Minister indicated that tax increases are a possibility and mentioned a proposed 10 percent 'death tax' on inheritances as a potential funding source, stating, 'everyone contributes, everyone is covered.' Government sources have suggested that one way to finance the social care reforms could be by scrapping the pensions triple lock. Former Labour Cabinet minister Darren Jones commented that the cost of the reforms might be too high to be funded solely through tax increases and suggested that reforming the triple lock could be a solution. The Prime Minister noted that the final decision on the funding model would depend on the outcome of Louise Casey's review of the social care system, and he expressed willingness to make 'unpopular' decisions to address the issue. Mr. Burnham, whose father recently passed away while in a care home, emphasized the urgency of the matter. He also mentioned that he would include his plan in Labour's next manifesto, despite the unusual timing of discussing manifesto contents three years before an election. Cross-party discussions on social care have already taken place, but both Reform and the Conservatives have stated they oppose tax increases for funding. Shadow home secretary Chris Philp suggested that reforms should be financed through cuts to the welfare budget. Reform UK's Treasury spokesman Robert Jenrick criticized Mr. Burnham, claiming he lacks the resolve to reduce the benefits bill. Mr. Burnham countered that many families are already incurring significant expenses for elderly care, and he compared the fairness of social care in England to the American healthcare system, where vulnerable individuals can face financial ruin due to their conditions. Additionally, the work and pensions secretary acknowledged that the welfare system needs to shift its focus from providing benefits to facilitating employment, highlighting the issue of one million young people not engaged in education, employment, or training.