Burnham Considers 10 Per Cent Post-Death Levy for Social Care Funding
Proposed levy could replace inheritance tax, aiming to fund a new National Care Service amidst political opposition.
Carla Rooney
Prime Minister Andy Burnham is considering a 10 per cent levy on all estates after death to help fund social care, a proposal that could replace inheritance tax.
The Prime Minister further expressed commitment to finding common ground, stating, 'Politicians might have different views but I’m serious about fixing this issue and to do that, we have to find common ground and listen to others to find a way forward.' Kemi Badenoch and Ed Davey have already engaged in these critical discussions, with Liberal Democrat leader Sir Ed Davey accepting Andy Burnham's invitation to talks.
However, Kemi Badenoch offered to work with Andy Burnham but will not support new tax rises for funding, a clear political divide. Andy Burnham asserted that no party holds the 'high ground' on social care reform, citing decades of collective failure.
No party is in a position where they’ve got the high ground – we’ve all failed on this issue over decades and the pressure now on the National Health Service as a result of that failure is huge.
Burnham stated, 'No party is in a position where they’ve got the high ground – we’ve all failed on this issue over decades and the pressure now on the National Health Service as a result of that failure is huge.' The history of social care reform is marked by 22 botched attempts in the past 30 years.
Baroness Louise Casey, head of a social care commission, highlighted this persistent cycle: 'For too long, we have been stuck in the same cycle: crisis, promises of reform, another review, and then retreat, while the people who need care, and their families, bear the brunt.' This commission into social care, headed by Baroness Louise Casey, was announced in January 2025 and began its work in April 2025.
Demographic pressures significantly strain social care resources, with 1.75 million people aged 85 years and over residing in England in mid-2024. This figure is projected to double to 3.6 million by mid-2049, increasing demand for care services; unlike NHS care, social care in England is not free.
Individuals often sell their homes to fund necessary services, creating immense financial hardship. In June 2024, an average of 13,600 people a day were medically fit to leave hospital but remained due to issues including adult social care availability.
Delayed discharges from hospital will reportedly cost the NHS £2.7 billion this financial year, further straining public services. Reform UK's research suggests the cost for the average mortgage-free homeowner in England and Wales could be £74,737 under such a levy.
The Prime Minister is due to set out his thinking on social care reform later in the week. The Big Conversation on Care will launch on Wednesday, allowing public input on adult social care in England via an online platform.
Nigel Farage was not invited to the meeting as he is not a sitting MP and Reform UK holds seven seats. Despite government statements that there are no plans to introduce a 'death tax' to fund social care reforms, Downing Street reportedly refused to rule out the policy on Monday when asked whether the Prime Minister still supported it.