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Proposed National Care Service could increase social care costs

Prime Minister Burnham has suggested a National Care Service, or a system based on NHS principles, which an expert suggests could lead to higher costs.

  • Prime Minister Burnham has proposed a National Care Service or a system operating on NHS principles.
  • Britain currently spends approximately 2.6% of GDP on social care.
  • Kristian Niemietz of the Institute of Economic Affairs suggests a state-funded system could be considerably more expensive.

Prime Minister Burnham has put forward the concept of a National Care Service, or a system that functions on NHS principles. The specific details of this proposal are not yet clear.

Kristian Niemietz, head of political economy at the Institute of Economic Affairs, suggests that a state-funded social care system could become considerably more expensive than the current model. This is attributed to potential immediate increases in demand if care is provided free at the point of use without means-testing, and the likelihood of political lobbying for higher wages in the social care sector.

Currently, individuals with savings are expected to pay for their social care until most of their assets are depleted, after which local authorities, supported by national government transfers, cover the costs through a means-tested safety net.

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