'A new tax being considered by ministers as a way to fund social care could raise up to £15bn a year, according to a new report.
The proposal would see a 2.5 per cent levy applied to the earnings of people over the age of 40, similar to the model used in Germany.
The revenue generated by the new tax would go into a ring-fenced pot used to fund social care.
Matt Hancock, the health secretary, has previously said he is “attracted to” the proposal, which is expected to be one option included in a government green paper due to be published before Christmas.
Research carried out by pensions and risk consultancy Hymans Robertson suggested the German-style system could raise half of the money needed to plug the £30bn-a-year gap in social care funding the UK is facing by 2031.
A levy on the income of over-40s has also been backed by influential parliamentary committees.
Under the proposal, people receiving care would be given cash pay-outs to enable them to pay carers, including family members.
Mr Hancock told the Sunday Telegraph last month: “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.
“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.'
Read more: New tax on over-40s being considered by ministers to fund social care would raise £15bn a year, study finds
Did you like this article?
Thank you for your vote!
13 May 2019
Tax web giants to save the high street: Tesco boss demands a 20% business rates cut for struggling shops - funded by a levy on online sales
30 April 2019
New Bill Will Force Owners of Hybrid & Electric Cars to Pay Fees to Offset Gas They Don’t Buy
From our advertisers
David Icke Interviewed At The New York Premiere Of Renegade - The David Icke Dot-Connector Videocast
From our advertisers