All NewsEducationTV
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
Story archiveAll categories
← All Stories

Burnham considers new taxes for social care overhaul

Created at 31 Jul · 11:06 AM1 source↑ Market-relevant
IN SHORT

Andy Burnham is exploring new tax measures to fund a significant overhaul of England's adult social care system. He aims to establish a national care service with improved pay and training for care workers, potentially funded through collective contributions.

✉Newsletter

PiQ Daily

Pick your topics. Get only what matters, on your cadence.

Key Numbers

£23,250savings threshold for care cost assistance in England

Who's Involved

Andy Burnham
Mayor of Greater Manchester, proposing social care reforms
Baroness Casey
Veteran troubleshooter conducting a review of social care
Sir Ed Davey
Leader of the Liberal Democrats, involved in cross-party talks
Stuart Andrew
Conservative shadow health secretary, participated in talks

↳ Why This Matters

The proposed overhaul and potential new taxes could significantly impact individuals' finances and the future of social care provision in England, aiming to address long-standing issues and improve services for millions.

Key facts

  • Andy Burnham is considering new taxes to fund reforms for adult social care in England.
  • He aims to create a national care service with improved pay and training for care workers.
  • Burnham wants social care to be funded on an 'NHS principle' of collective contribution.
  • He acknowledged that "difficult decisions" on funding would be required.
  • A review by Baroness Casey will assess how to pay for a national care service.

Andy Burnham has indicated a willingness to consider new taxes, potentially including a levy on workers, to fund a comprehensive overhaul of adult social care in England. He described the current situation as a "major dereliction of public duty" by successive governments and vowed to implement changes, emphasizing the need for "difficult decisions" on funding.

Burnham's vision includes establishing a national care service that operates on an "NHS principle" of collective contribution, ensuring individuals do not have to sell their homes to pay for care. The reforms aim to provide better pay and training for care workers, with a fair pay agreement set to be a key building block. He also highlighted the potential for closer integration between social care and the NHS, which could lead to savings and ease pressure on the healthcare system.

To build cross-party consensus, Burnham has engaged in discussions with political leaders, including Liberal Democrat leader Sir Ed Davey and Conservative shadow health secretary Stuart Andrew. However, he did not invite representatives from Reform UK or the Green Party to these talks. The Prime Minister has supported the initiative, acknowledging the political risks but stressing the greater risks of inaction. A review by Baroness Casey is underway to explore funding mechanisms for the proposed national care service, with its findings expected next summer.

Frequently asked questions

The main goal is to fix the adult social care crisis in England by establishing a national care service with improved pay and training for care workers.

Burnham is not ruling out tax rises and is exploring a model of "collective contribution" similar to the NHS principle.

In England and Northern Ireland, individuals with savings above £23,250 are generally not entitled to council assistance with care costs.

Baroness Casey, a veteran troubleshooter, is conducting a review that will consider how to pay for a national care service.

What Happens Next

01Baroness Casey's review of social care funding is expected next summer.
02Burnham plans to put funding decisions before the country at the appropriate time.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence

How It Developed

Andy Burnham has pledged to address the adult social care crisis in England.
He indicated that "difficult decisions" on funding would be necessary.
Burnham suggested a "collective contribution" model, similar to the NHS, could be implemented.
He did not rule out tax rises to pay for reforms.
Plans include a new national care service with better pay and training for care workers.
A review of social care by Baroness Casey will be published next summer.
Burnham aims to prevent individuals from having to sell their homes to fund care.
He held cross-party talks with Sir Ed Davey and Stuart Andrew regarding potential changes.

Sources

T1
‘Difficult decisions’ – Burnham looks at new tax on workers to fund social care overhaulCity AM
T2
Andy Burnham doesn't rule out tax rises to fix social carebbc.com
T2
Andy Burnham opens door to tax rises to pay for social care overhaulft.com
T2
Burnham hints at tax rises to fund social care reformstelegraph.co.uk

Related Stories

Burnham's tax power shift aims to free England’s mayors from ‘Treasury death grip’
30 Jul · 9:41 PM
Andy Burnham becomes first Co-operative Party PM, signaling shift in governance
31 Jul · 2:45 AM
Mayor Mamdani's agency urged a subdued rollout for new tax
30 Jul · 10:41 PM
Muslim Council of Britain demands explanation for government's non-engagement policy
31 Jul · 10:06 AM
Medical colleges condemn scrapping of NHS placements for overseas doctors
31 Jul · 6:11 AM