Government planning social care tax, report

Plans for a new social care levy are being considered by the government as part of the autumn’s Green Paper, a report has said.

The Sun said the social care tax was being considered in order to fill the £3.5bn funding gap in the sector.

The plans for creating a new insurance fund had been initially put forward by former Minister for Health and Social Care Jeremy Hunt, the report said.

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A senior source commented: “To an extent all bets are off now as we have a new Secretary of State but it’s definitely under discussion.

“One idea is that the plan would be voluntary.”

Former Cabinet Minister Damian Green backed the proposals, commenting: “If you need to spend more money the key thing is to try and make the payments fair across the generation.

“If people of a working age put money into an insurance premium, then older people who have property wealth should also be a very small amount of wealth aside too.

“If you don’t then today’s 50 year-old is not only paying for their own care but the care of today’s 70 year-old.”

Mr Green revealed plans for a potential ‘dementia tax’ in February this year (see Millions of workers facing potential ‘dementia tax’).