Number 10 mulls over tax on over-40s to cover social care costs
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Plans are being considered by the government to implement a new tax on over-40s to help fund their own old age care.
The new plan, reportedly being pushed by health secretary Matt Hancock, would see workers over the age of 40 pay 2.5 per cent of their income to pay for their future old age care, according to the Mail on Sunday.
The levy would come as a part of the government’s attempts to improve the country’s social care system, which has repeatedly been deemed to be in crisis.
Charity organisation Age UK estimates that 1.5m Britons over the age of 65 do not receive the care and support needed to complete everyday activities.
Hancock wrote to MPs and peers across the political spectrum last week in an attempt to broker a cross-party consensus on social care reform.
The letter set out plans to have initial talks on Friday, before having a more formal second round of discussions in May.
The letter read: “The number of reports that have been published in recent years with different suggested approaches shows how difficult it is to reach agreement on the best way to reform the social care system.
“Any solution also needs to consider the financial impact on taxpayers as a whole, and the competing demands on taxpayers’ money from other public services.”