Prime Minister Andy Burnham has urged opponents to engage in cross-party discussions regarding adult social care reform. He indicated that new taxes might be necessary to fund an overhaul, describing this as a "difficult decision."
Speaking from a Jewish care centre in North London, Burnham expressed a desire for social care to be funded on an "NHS principle" of collective contribution. He stated that the current system is worse than American healthcare.
The Prime Minister announced that a review into social care reforms would be published sooner than planned and confirmed he would participate in cross-party talks with opposition leaders. However, he ruled out raising income taxes, VAT, or national insurance, citing the Labour manifesto from 2024.
Reports suggest that officials in the health department have considered a new levy on top of income tax to fund social care. One option reportedly explored was a 1.8 per cent levy on earnings above £6,240 for workers over 34, based on a report by the think tank Re:State.
Decisions on potential tax hikes or spending re-allocations are likely to await the publication of the social care review led by Baroness Louise Casey, with decisions potentially being made in next year's Budget. Casey's review is expected later this year.