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Brown Plans Ni Tax Rise To Pay For Elderly Care

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Pretty big news, yet another scheme to try and keep the housing market stable and pour more money into the gaping maw of boomers.


Gordon Brown was engulfed in a new row over the parlous state of the country’s public finances last night amid fears he is planning a huge post-Election tax hike.

The Government is looking at imposing a rise in National Insurance contributions after the next Election to help fund the cost of care for the elderly, it was claimed yesterday.

The controversial idea – to spare people from having to sell their homes to cover the cost of care bills in their old age – will be unveiled in a Government blueprint on long-term care for the elderly, reports said.

The NI plan will fuel suspicions that Labour realises it will have no choice but to hike taxes after the next Election to combat soaring public debt.

But last night Vince Cable, the Liberal Democrat Treasury spokesman, condemned the NI plan as ‘an income tax rise by another name’.

He urged the Prime Minister to reduce unnecessary public spending instead by cancelling the renewal of the Trident nuclear deterrent and by reducing generous public-sector pensions.

Health Secretary Andy Burnham will publish a consultation paper called Care And Support later this month, detailing how to reform social care provision.

Estimates suggest that 30per cent of people who have to go into a care home have to pay their own fees.

The average stay in a home is two years, at a cost of about £25,000 a year.

In what has been condemned as a postcode lottery, figures last year showed that in some parts of the country, elderly people are up to 15 times less likely than people in other areas to receive State funding towards their care home fees.

Advanced leaks of the paper this weekend said Ministers were planning to create a national social care ‘pool’, part-funded by an ‘earmarked’ rise in NI contributions, similar to the one introduced by Mr Brown in 2002 to boost NHS spending.

Every worker would contribute but higher earners would pay proportionately more – a move that will appeal to Labour’s grassroots and energise its core vote at the next Election.

Any NI rise would apparently not take effect for some years, although the levy is due to rise by 0.5per cent in 2011 to fill the black hole in public finances.

Last night, Downing Street played down the prospect of a fresh rise in NI contributions, stressing that any tax proposals were a matter for Chancellor Alistair Darling.

No 10 said it would ‘not be speculating’ on the paper, which would contain ‘a range of options and different scenarios’.

Sources close to Mr Burnham suggested that the idea of a NI increase was ‘not a runner’, adding: ‘We are not really considering that.’

They hinted instead that a more likely plan to cover the mounting care costs was the

previously floated idea of a one-off payment by individuals of about £12,000, made either when someone retired or taken out of the person’s estate when he

or she died.

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of course people who have the means should pay for their own care even if that means selling their house (after all they no longer need to live in it). If the would be beneficiaries of the estate want to safeguard their 'right to inherit' they should look after the old folks themselves.

I speak as a boomer, no gold plated pension, no BTLs, no second home - just an average person so don't flame us all.

anecdotally what is unfair is that those who fund their own care often pay more than those that are funded by the tax payer for exactly the same benefits. :(

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Ive decided if I win the lottery I will buy a big villa in spain and italy. That probably wont happen either, so im not going to worry about it. :lol:

Does anyone actually think Labour can get another term? Ever again?

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So instead of people who can afford it paying for their care, we all pay for it through higher tax. The money the elderly save then goes to their offspring as inheritance. Thus in effect we are raising tax on one man to give it to another, through inheritance. How can it be fair that someone that will receive no inheritance should pay for another's so that man will be able to outbid him on things he needs. The inheritor did not do a thing to merit the gift, it was an accident of birth. The poor are taxed, not for services provided, but to hand money directly to the wealthy simply because they are wealthy.

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Can someone merge the threads please.

As I said on the other thread Labours solution to any problem is put a tax on it.

Just where they think this money is going to come from is beyond me, NI contributions like tax revenues are going to collapse. I doubt that they would even cover the lost revenue let alone increase it.

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Sounds like yet another measure to protect those who benefited from the ponzi scheme at the expense of those that got shafted by it. Effectively shafting the losers to help the winners close the drawbridge and leave us stranded.

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this actually made me really ******ing angry.

i thought that state handouts were only designed as a measure of last resort, not something that gets dished out will-nilly regardless of whether it's needed or not?

and we're talking about really big cash here, it costs hundreds and hundreds of pounds to keep someone in a care home, a single old person getting a care home paid for could easily be burning up as much cash as three or four entire scrounger families on the full suite of benefits

why on earth shouldn't someone with tens/hundreds of thousands of pounds worth of assets have to sell up?

my grandmother is currently going a bit dotty and has quite a lot of money stashed away in the bank [say £500k to £1.5m, i'm not sure of the details]... we were trying to persuade her to give some of it away to avoid the worst of inheritance taxes... but she refused in the end, worried that she'd be left with nothing... i guess that, if she went into care, there'd be some mechanism for automatically taking the money out of her account... if i were her accountant i'd be advising her to spend the lot on a big ******ing pwoperdee, if that's going to be out of bounds.

Edited by the flying pig

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