Prime Minister Andy Burnham's ambitious social care reforms could result in a £2,300 tax increase for individuals earning £130,000, according to a leading tax expert. The warning comes as analysis reveals that his pledge to raise social care workers' pay will cost up to £2.2bn.
Tax Expert Warns of New Levies
Brian Monteith, a former member of the Scottish and European Parliaments and senior adviser to the Tax Reform Council, told the Telegraph that a National Care Service "has to come out of taxes, which means a new tax or raising existing taxes yet again." Monteith cautioned that a 2p death tax across all bands would mean increases ranging from £400 for the average salary to £2,300 for someone earning £130,000.
Mr Burnham, who succeeded Sir Keir Starmer as Labour Party leader, has committed to building on a deal struck by his predecessor to offer "fair pay" for carers. The £2.2bn price tag for the pay rise has raised concerns about how the policy will be funded.
Political Backlash
Sir Mel Stride, the shadow chancellor for the Conservatives, criticised the announcement, stating: "Once again, the Prime Minister has produced an announcement with an astronomical price tag and a black hole to match. This is the same failure that defined Keir Starmer. Starmer had four years in opposition to write a plan for government and did not. Andy Burnham is now repeating the mistake, rushing out unfunded policy that will resurface this autumn as huge tax rises."
Stride added: "Any changes to social care must be backed by a clear, credible and fully costed plan that delivers better care for the public and value for taxpayers."
Government Response
Downing Street responded to the Tories' analysis, accusing Kemi Badenoch's party of "playing politics" in respect of social care. A government source said: "Andy is focused on problem solving, rather than point scoring and made-up numbers. It's time to draw a line under people playing politics when the human cost of that means carers struggling, families paying the price, and our NHS buckling under the strain."
The debate underscores the financial challenges facing the Prime Minister as he seeks to reform social care. With costs estimated at £2.2bn, the government must decide whether to introduce new taxes or increase existing ones, a decision that could impact millions of taxpayers.
