Prime Minister Andy Burnham has hinted at introducing a 10 per cent levy on all estates, dubbed a “death tax”, to finance his sweeping social care reforms. The proposal has drawn immediate fire from Reform UK and the Conservative Party, who are demanding he rule out any tax increases ahead of his detailed announcement on Wednesday.
The 'death tax' proposal
Mr Burnham, the Labour MP for Makerfield, outlined plans on Wednesday for a new National Care Service, estimated to cost up to £18.7 billion annually. While he stopped short of specifying a timeline for full implementation, he signalled that “major changes” could be delivered within the next three years, before the next general election. Reports suggest the prime minister is open to a 10 per cent charge on estates as a funding mechanism.
Reform UK quickly seized on the figure, calculating that the average mortgage-free homeowner in Mr Burnham’s own constituency would face a bill of £50,669 under the proposed tax. The party’s Robert Jenrick said: “Andy Burnham has no mandate whatsoever to raid people’s precious savings. Voters have already rejected a death tax on four separate occasions and it flies in the face of his so-called ‘Makerfield Test’.”
Political backlash
Conservative leader Kemi Badenoch also weighed in, insisting that funding for social care must come from cutting current spending, not from new taxes. “The money must be found by reducing current spending. You must rule out any tax rises, or increased borrowing that will ultimately fall on the next generation to pay for,” she said. “The last thing Britain needs is further tax increases to pay for social care.”
The criticism comes amid broader concerns about the affordability of the proposed National Care Service, which would effectively nationalise adult social care in England. Mr Burnham has argued that without reform, the National Health Service would collapse under the strain of caring for people who do not need to be in hospital.
Prime Minister's defence
The Prime Minister’s official spokesman declined to pre-empt Wednesday’s update, saying: “I’m just not going to get ahead of his update on this issue, which will come later in the week. And he has said in his interview today that creating a new system will take time.” The spokesman added: “But he’s also been clear about the consequences of not doing it, which is that the NHS would collapse under the weight of having to care for people not really needed in the NHS system.”
Mr Burnham himself echoed that sentiment, stating: “If we don’t do it, the NHS will collapse under the weight of trying to care for people who’ve really not needed to end up in the NHS system.” The prime minister has yet to confirm whether the death tax will be part of his final proposals, but the political battle lines are already drawn.
