All workers over the age of 40 would pay a new tax under plans being considered by the government to tackle the social care crisis.
“I am impressed by the work of the select committees who have come up with a model that is adapted from what was introduced about 20 years ago in Germany, and it appears to be working there,“ Matt Hancock, the health secretary told The Sunday Telegraph.
“One of the reasons I'm attracted to the proposal is that it's cross party. This is a problem which can only be solved by people coming together behind a solution, because as soon as it's turned into a political football it makes it extremely difficult to make any progress at all.
The plan is designed to avoid families being left to pay the “catastrophic“ costs of social care after the government’s failure to cap bills, or find another solution.
Under the committees' proposals for a “social care premium“, employees and employers would split contributions, with tax levied through a new mechanism or added to the existing National Insurance scheme.
Theresa May was strongly criticised for announcing £20bn for the NHS over the next five years, but nothing permanent for social care – despite evidence that failures in social care rebound on the health service.
The Association of Directors of Adult Social Services warned that the NHS funding was “like pouring water down a sink with no plug in“.