Prime Minister Andy Burnham is expected to announce a mandatory £1,327 annual tax charge for workers earning £80,000 as part of a sweeping social care reform plan, according to a proposal from the think tank Re:State, where Burnham recently served as an adviser. The plan would require employees at that income level to contribute to a national fund aimed at fixing the long-standing social care crisis.
Burnham is set to make a morning visit to a care home in London on Wednesday alongside Baroness Louise Casey, who is leading an independent review into the social care sector in England. The visit is part of a cross-party meeting where Burnham said he wants to find "common ground" with other leaders on the issue.
Funding mechanism and public reaction
The proposal, first published by Re:State, a public services think tank, has sparked debate over how the government will finance social care. Under the plan, an employee earning £80,000 would pay an extra £1,327 annually into a national fund. The contributions would be mandatory, designed to pool resources to address systemic underfunding.
Speaking earlier this week in Portsmouth, Burnham said: "It was only a week ago today that I stood outside Downing Street and said I wanted to build a different way of doing politics – more problem-solving, less point-scoring. And credit to the leaders of the two main parties, Kemi Badenoch and Ed Davey, both of whom have reached out over the weekend to say they're prepared to engage in talks. I think, you know, it's one thing to say that and another to actually then mean it and try and find common ground. But let's try on this issue."
Background and personal connection
Burnham has long been vocal about social care, partly due to his father's battle with Alzheimer's. Two years ago, while standing for re-election as Greater Manchester mayor, he remarked: "There's only one answer: the political parties have to show courage on this issue and fix social care properly. And I put forward a plan for that 14 years ago."
The Prime Minister acknowledged that no party has "the high ground" on social care, stating, "we've all failed on this issue over decades." The cross-party meeting today aims to break the political stalemate and find a sustainable solution.
Implications for workers and the economy
If implemented, the £1,327 charge would affect workers in higher-income brackets, particularly those earning around £80,000. The think tank argues that mandatory contributions are necessary to ensure a stable funding stream for a sector under immense pressure from an aging population and rising costs. Critics, however, are likely to question the additional tax burden on middle- and high-income families.
The meeting with Baroness Casey, who is reviewing the sector, could shape the final proposal. Burnham's administration has signaled that social care reform is a top priority, and Wednesday's announcement may outline a timeline for legislation.
