Tax over-40s to help plug £2.5bn adult social care funding gap, say MPs
3 min read
People aged between 40 and 65 should pay a new "Social Care Premium" to help plug a growing funding gap in the social care sector, MPs have said.
A joint report from MPs on the Housing, Communities and Local Government and Health and Social Care Committees warns that the current social care system is "not fit to respond to current needs, let alone predicted future needs".
It says a lack of funding has left social care "under very great and unsustainable strain", and calls for a new payment to be tacked onto the National Insurance contributions of those aged 40-65 in a bid to plug the gap.
MPs hope the fund - which they say could also be paid directly into a not-for-profit social insurance pot - would eventually allow people to pay for assistance with washing, dressing and eating.
However, they say state assistance with accommodation costs should continue to be means-tested.
Housing committee chair Clive Betts called on ministers to back a "joined-up approach" to tackling Britain's social care crisis.
"The social care system is in a critical condition and there is an urgent need for more funding both now and in the future to ensure people are properly looked after," he warned.
"Given the huge funding gulf, the Government should now take the opportunity to build both a political and public consensus around the need for a new Social Care Premium to secure a fair and sustainable system in the long-term.
"The Government must also consider social care in its wider context and ensure a proper joined-up approach with other services such as public health and housing."
The report comes in the wake of Theresa May's pledge to give the NHS an extra £20bn a year by 2023 - a cash boost the Prime Minister has confirmed will not benefit the social care system.
Sarah Wollaston, chair of the Health and Social Care Committee urged the Government to find “a fair and sustainable settlement for social care".
She added: "Too many people are being left without the care and support they need and it is time for decisions to be made about how the costs are shared.
"This report from MPs across the political spectrum also draws on the informed views of a Citizens’ Assembly in setting out our recommendations to Government. Doing nothing cannot be an option."
Meanwhile, the Association of Directors of Adult Social Services (ADASS) - which represents social care bosses - said the report showed that there was now "cross-party support for a long-term funding solution for adult social care".
President Glen Garrod added: "The amount of evidence is overwhelming - the case has been made and it is now critical that the Government make significant progress in finding a necessary solution for a vital public service."
A Treasury spokesperson said: “As made clear by the Prime Minister last year, we will honour the commitments we made during the period of our membership of the EU.
“We have negotiated a settlement that is fair to UK taxpayers and ensures we will not pay for any additional EU spending beyond what we signed up to as a member.
“The National Audit Office confirmed in April that our estimated figure is a reasonable calculation. Now we are discussing what our future relationship looks like.”
Sally Copley, Director of Policy and Campaigns at Alzheimer's Society, said 'a social care premium is a fair way of raising much-needed money, which could be channelled through a dedicated Dementia Care Fund to help ensure everyone gets the right support.' Read the full response here.
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