Social Care Green Paper may include new elderly care tax proposal

Proposals to introduce an elderly care tax on all workers over 40 may be included in the government’s Social Care Green Paper, which is expected to be published in December.

The proposals are based on the current system in Germany where the over 40s contribute 2.5% of their wages to a ring-fenced pot for social care.

The ideas were put forward by a panel of Commons select committees in the summer (see Cross party committee calls for social care premium).

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Health and Social Care Secretary Matt Hancock told the Sunday Telegraph: “I am impressed by the work of the select committees who have come up with a model that is adapted from what was introduced about 20 years ago in Germany, and it appears to be working there.

“One of the reasons I’m attracted to the proposal is that it’s cross party. This is a problem which can only be solved by people coming together behind a solution, because as soon as it’s turned into a political football it makes it extremely difficult to make any progress at all.

“I’m prepared to have a range of options and see if we can build a consensus around one of them rather than be dogmatic about it.”