Treasury minister denies ‘death tax’ plan to fund social care

By Jon Vale1st March 2017News EnglandBusiness / Funding / Finance, Finance, Government / Politics, News England, Social Care

A Treasury minister has denied reports the Government is considering a “death tax” to help fund social care.

Jane Ellison said “no” to Labour former health secretary Andy Burnham when he asked whether the Tories were pursuing a similar scheme to that mooted by Labour ahead of the 2010 general election.

Her comments came after reports in The Times newspaper suggested the Conservatives were examining how the assets of older people can be claimed by the state after their death to help pay for social care.

Speaking at Treasury questions, Mr Burnham (pictured) said: “Back in 2010, to meet the rising costs of social care, I proposed a compulsory care levy on all estates.

“From memory, the Conservatives produced an election poster with gravestones on it and called it a death tax.

“I read in today’s Times that ministers are now considering exactly the same proposal.

“Can this possibly be true?”

Ms Ellison replied: “No.”

The denial came amidst further angst from Tory MPs over spending on health and social care.

Former minister Sir Hugo Swire called for transitional relief for social care in the Budget until a long-term solution can be found, while Twickenham MP Tania Mathias called for national insurance contributions to be ring fenced for spending on health and social care.

Ms Ellison resisted these calls, though, saying the Government was putting more money into the NHS and social care.

Andrew Tyrie, chairman of the Treasury select committee, also criticised the Government’s handling of the NHS budget.

The Tory MP said: “Over the past two years the Department of Health has cut its capital budget by 20% and used that for running costs and to pay for salaries.

“Did the Treasury press for these cuts in capital spending – I hope they didn’t – and does the chief secretary agree with me that raiding the capital budget is no way to find efficiency savings?”

In reply, Treasury minister David Gauke said: “It was actually the request of the health service and the Department of Health that there was the switch from capital to resource.

“But in terms of finding efficiencies in the NHS, and indeed in the public sector as a whole, it is important that we deliver sustainable efficiencies, embed a culture of efficiency, and ensure we get value for money for the taxpayer.”