All workers over 40 could face tax rise to fund cost of social care

All workers over 40 could be forced to pay more tax to cover the costs of care when they reach old age.

The tax hike would help plug the multi-billion pound hole in social care funding – which is set to grow as people live longer.

The Guardian reported that everyone over 40 would start contributing towards the cost of care in later life by paying more in tax or national insurance, or would have to insure themselves against hefty bills for care.

Conservative ministers have confirmed they are still working on a social care plan – and say it would mean no one ends up having to sell their home to pay for care costs.

A year ago Boris Johnson claimed there was “a clear plan we have prepared” to fix social care.

But he has not yet outlined any details and can’t guarantee it would be published this year, the Mirror reports.

The Prime Minister’s official spokesman said: “We remain committed to bringing forward a plan for social care so everybody is treated with dignity and respect, and nobody has to sell their home to pay for care.


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“The Health Secretary has sought views from across Parliament, but this is one of the most complex issues we face, and it’s right we take the time to develop a fair and sustainable solution.

“We continue to work on the proposals. I don’t think we shy away from the fact that this is a very complex area and that we do need to make sure that we get it right, and that we deliver a solution which is fair and also which is sustainable.”

But the Government has dismissed suggestions that Health Secretary Matt Hancock is “championing” the idea, as the Guardian had reported.

It would mean over-40s paying more in tax or national insurance – or having to take out insurance to cover the potential costs of ending up in a care home.

A similar scheme was proposed by Tory former minister Damian Green in 2018.

He suggested that a worker on an average salary of £27,600 would have to pay an extra £364 in national insurance contributions over a year. Someone earning £52,000 a year would pay an extra £884.

Mr Green said at the time: “More and more people are going to live to 100 and we must plan for it.

“The next generation or two will not have the same amount of money invested in homes.

“So we should add maybe 2% in a compulsory National Insurance levy cutting in at around 40 years old – as they do in Japan – so your social care is guaranteed and you won’t have to sell off your house.”


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