Adults over-40 should pay tax to fund elderly care and cover £2.5billion NHS shortfall, MPs warn
Ministers are being urged to bring in a social care insurance 'premium' which could see National Insurance paid into an independent pot for care in old age
A TAX should be introduced for over-40s to pay for their care in old age, MPs will say today.
The Health and Housing Committees want an extra National Insurance premium to fund the cost of caring for the elderly.
Ministers are being urged to bring in a social care insurance “premium” which could see extra National Insurance paid into an independent pot earmarked for care in old age.
The cross-party groups warn the current system is “unsustainable” — with a £2.5billion shortfall in the next year alone.
Their joint report suggests contributions start at age 40 and extend to the over-65s.
But it would come on top of any tax rises to boost the NHS.
MPs said eventually the personal element of social care - such as help with washing, dressing and eating - would eventually be free to everyone who needs it - but accommodation costs would stay means-tested.
They also called for an additional inheritance tax charge on estates valued above a certain threshold, to “pool risk” and prevent those requiring long term care being faced with “catastrophic” costs.
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Clive Betts, the chair of the Housing, Communities and Local Government Committee, said: “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.
“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.”
Tory Sarah Wollaston said: “We can no longer delay finding a fair and sustainable settlement for social care.
"Doing nothing cannot be an option.”
Proposals for social care funding are due in a green paper this autumn.
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