Andy Burnham fails to rule out 10% ‘death tax’ on all estates to raise £18bn to pay for social care

Andy Burnham today could not rule out the £18bn ‘death tax’ to be paid for social care reforms.

The Prime Minister dodged questions about how he would fund his plans despite growing backlash over a possible change to inheritance taxes.

He has previously championed a ‘national care levy’ and is said to be in favor of a 10 per cent charge on all estates after the owner dies to replace current inheritance tax.

Reform England’s Nigel Farage said Mr Burnham had ‘no authority’ for such a proposal, while vowing that his party would ‘fight the death tax at every step’.

Meanwhile, Conservative Party leader Kemi Badenoch has warned that she will not support social care measures that increase taxes or increase Government borrowing.

The Prime Minister’s plan to make social care free at the point of use is estimated to cost an extra £18bn a year.

But the Prime Minister avoided saying how he would fund social care reforms on Monday when asked whether he was still keen to see a 10 per cent charge applied to all estates when someone dies.

Mr Burnham instead repeated his call for other political parties to forge a ‘spirit of collaboration’ in tackling the country’s social care crisis.

UK Reform Leader Nigel Farage has vowed his party will ‘fight death tax every step of the way’

Mr Burnham signaled he was open to ‘cross-party talks’ on social care during a meeting with Ukrainian President Volodymyr Zelensky at Portsmouth Naval Base.

Asked how he would fund social care changes, he told reporters: ‘Only a week ago today I stood outside Downing Street and said I wanted to build a different way of doing politics; More problem solving, less points collecting.

‘And thank you to the leaders of the two main parties, Kemi Badenoch and (Liberal Democrat leader) Ed Davey; Both contacted over the weekend and said they were ready to begin talks.

‘I guess saying it is one thing, actually saying it and trying to find common ground is another. But let’s try this topic.

‘No party is in a position of superiority; ‘We have all failed at this for decades and the pressure on the NHS as a result of this failure is now enormous.’

Mr Burnham added: ‘I would like to see if we can organize cross-party talks to build the spirit of cooperation from the start.

‘This problem requires a permanent, cross-party solution that the country can support; so the further we go on this basis the better.’

The NHS will ‘collapse’ unless action is taken on social care, the Prime Minister warned in an interview with the BBC this weekend; but he declined to put a timeline on when he would introduce the changes.

The overhaul of the social care system is an unfinished business for Mr Burnham, who laid out plans for change when he was health secretary in Gordon Brown’s government in 2010 but saw his proposals defeated by fierce opposition from the Conservative Party.

Reform Treasury spokesman Robert Jenrick warned the Prime Minister against bids to ‘reheat’ his previous failed plans, saying: ‘Everyone wants to fix social care, but an £18bn death tax is certainly not the answer.

‘People are already being crushed under a record tax burden. ‘If Burnham goes ahead it will be a huge blow to millions of people across the country.’

Mr Jenrick added that Mr Burnham ‘does not have the authority to launch a massive tax attack on the country’.

‘If Andy Burnham wants to reintroduce the failed death tax, he should call a general election and see what the British people make of it,’ he said.

In a letter to the Prime Minister, Ms Badenoch warned against leaving the cost of social care reforms to ‘the next generation’.

The Conservative Party leader reiterated his opposition to punishing those who provide their care in later life.

Unlike NHS care, social care is currently not free at the point of use, and high costs sometimes mean people are forced to sell their homes to meet their needs.

People with a savings value of more than £23,250 are not entitled to help with maintenance costs from their local council.

Ms Badenoch wrote: ‘Adult care expenditure alone is already £35bn a year and is set to rise given our aging society.

‘The Conservatives are happy to work with you and other parties on social care reform. But we will only support a solution that complies with two basic principles.

‘Firstly, any solution to social care issues must also be fair to those who have prepared and saved throughout their lives.

‘Secondly, money needs to be found by reducing current spending. ‘You should ignore any tax increases or borrowing increases that will ultimately fall on the shoulders of the next generation.’

In his letter to the Prime Minister, Kemi Badenoch warned against leaving the cost of reforms to future generations

The Conservative Party leader noted that under Labor, Government spending in 2028/29 is forecast to be £152bn higher than under the previous Conservative administration’s plans, with taxes £105bn higher and borrowing £47bn higher.

‘With businesses closing or relocating, youth unemployment higher than in the Eurozone and the cost of living already causing real hardship for many people, the last thing Britain needs is further tax increases on social care,’ he added.

Speaking to the BBC’s Laura Kuenssberg, Mr Burnham said the NHS would never return to “good waiting time standards until we fix social care”.

The Prime Minister said he would ‘move as quickly as we can’ on reforms but ruled out committing to creating a completely new system before the next general election in 2029.

‘I think there are big changes you can make before the next election,’ he added.

‘The reason I say I’m going as soon as I can is because I believe the biggest cause of corridor care in the NHS is the breakdown of social care; This is the biggest reason why billions of dollars are spent on people needlessly going from care at home or in residential care to hospital because sometimes the care workers supporting them have no choice but to call 999.

‘Let me touch on this point because this is very personal to me. And then people stay in hospital for long periods of time, which should never have happened in the first place, and then they’re able to go home but can’t be discharged because there’s no social care.

‘This is costing the NHS billions of pounds… and until we fix social care we will never get the NHS back to good waiting time standards.’

Mr Burnham also vowed to use ‘the political capital I have’ to fix the ‘broken’ social care system.

‘I wouldn’t want to leave office without making any significant changes,’ he continued.

‘I can’t put a timeline here right now. ‘If we don’t do this the NHS will collapse under the weight of trying to provide care to people who don’t actually need to be part of the NHS system.’

Asked on Monday morning whether the Prime Minister was still keen on a 10 per cent charge on properties for social care, Mr Burnham’s official spokesman said: ‘I will not get in the way of an update on this issue which will come later in the week.

‘In his interview he said it would take time to create a new system.’

Liberal Democrat leader Sir Ed Davey said: ‘I know the carers I met this morning will feel a sense of hope that politicians can finally do something serious to fix care in our country.

‘I am ready to roll up my sleeves and do whatever I can to achieve a real and lasting consensus on social care.

‘Family carers should be at the heart of any new system, ensuring everyone gets the care they need and no-one losing their home as a result.’