Burnham wants social care reform but warns of tax rise

By The Press Association28th July 2015News EnglandBusiness / Funding / Finance, Finance, News England, Reform, Social Care

Extra taxes to pay for a social care system that mirrors the National Health Service are being outlined by Labour leadership contender Andy Burnham.

The reforms would lead to “difficult financial change” likely to spark unfavourable headlines but would allow people to keep what they have worked for if they need to be looked after in later life, the Shadow Health Secretary will say.

Setting out plans for a commission echoing the Second World War Beveridge report that became the foundation of the modern welfare state, he will tell supporters the party must be “bold” and “dare to dream again”.

The review would also look at replacing tuition fees with a graduate tax system and ways to get people on to the housing ladder.

In a speech in Leeds, he will say: “Didn’t the Labour Party create the NHS in the last century to free people from the fear of medical fees? So why is the Labour Party of the 21st century standing by while people with dementia are not just wiped out physically by their condition but financially too?

“I am determined to make Labour the party that helps everyone protect what they’ve worked for,” he will add. “And I believe the only way we can do that is to extend the NHS principle to social care – where everybody is asked to make a contribution according to their means and when everybody then has the peace of mind of knowing that all their care needs, and those of their family, are covered.

“And yes, let me be clear: I would have to persuade people of a difficult financial change to bring this about. And this is where the modern Labour Party has always backed off, fearing difficult headlines in the Tory press.

“But that timidity is leaving a broken care system in place and seeing many more family homes sold like my gran’s.

“I believe Labour need to rediscover the self-confidence to make a big argument. It’s time to trust the people. If what we’re saying is right, and provides people with an answer, they will support us, whatever the media says.”

Mr Burnham will criticise the Conservatives for delaying plans to introduce a cap on care costs until 2020 and claim the system that is planned is little more than a con.

But he will warn that Labour will stay in opposition if voters believe it is “cavalier” about public finances and must show its reforms are backed up by a “credible financial plan”.

If elected leader, he will set up a commission that will ensure “fairness across the generations”.

“It will consider moving away from tuition fees and towards a universal graduate tax model for young people on both the academic and technical routes,” Mr Burnham will add.

“It will look at new ways of paying for housing to get people on the housing ladder. And it will consider the options of paying for social care, including a new care levy.

“I will establish a broad-based, inclusive commission because I want to build a new social consensus about how as a society we pay for these crucial things.

“But I also want to ensure that each of them is underpinned by a credible financial plan. Labour will not return to Government if people think we are cavalier about the deficit or the public finances. It is no good promising the earth if we are not clear with people how things will be paid for.”

Mr Burnham will tell party members that life is getting harder for millions of people and a generation is “in danger of being left behind”.

“We cannot carry on as we are. It’s time to be as bold in this century as we were in the last. On this special anniversary, let’s vow to recapture the spirit of ’45.

“Let’s dare to dream again, show how life can be better tomorrow than it is today and provide something in very short supply in this country right now – hope.”