A ‘death tax’ is one of the social care funding options being considered by a government committee, the Financial Times (FT) has reported.
Other proposals being considered by the committee include the Wanless review in 2006 that argued for a free level of social care for everyone, following which contributions would be matched by the state up to a defined limit.
Further consideration has also been given to the Dilnot proposals, which propose a £72,000 ceiling on elderly social care funding.
Other options include compulsory social insurance as seen in Japan where it is levied on people over 40.
The news comes as Chancellor Philip Hammond faces mounting pressure to announce extra funding for health and social care in next week’s Spring Budget.
During a speech in London today, the Shadow Chancellor John McDonnell urged the government to use the Budget to ease pressures on the sector.
The Local Government Association (LGA) has said councils face a £2.6bn social care funding gap by 2020 (see Tax rises will not cover £2.6bn funding gap, LGA warns).
It said: “If our cherished local services are to survive the next few years and beyond, it is imperative that the government now uses the Spring Budget to take urgent steps to improve the immediate funding outlook for local government and secure its financial sustainability in the long-term.”
The FT said the government is considering extra short term funding of between £700m and £1bn to stabilise the social care system.