Middle-aged Workers and Retirees to Pay More Taxes to Fund Their Social Care
According to MPs, the UK government should introduce a new tax funding for workers aged 40 years old and above, retirees and employers to cover the spiraling social and health care costs of the growing population of older people as well as those with disabilities.
The Health and Social Care Committees and the Housing, Communities and Local Government both call for the UK government to introduce a new tax fund named “social care premium” for England. The said tax fund will help address the rising social care costs on elderly people which would become “unsustainable” in the next couple of years.
The said new system also aims to ensure that every personal element of social care, like dressing, feeding, and washing, will be free to everyone who needs it, especially when workers reach the retirement age. To realize this goal, both organizations state that payments for social care premiums should start when the worker reaches 40 years old and can be extended up to 65 years old.
The Budget Cuts
For the past few years, social care suffers from government cuts, stretched services and council budgets which put a lot of pressure on the NHS to continue supporting and sustaining the aging population at home after they’re well enough to leave the hospital. According to the NHS, they would need billions of pounds to cater to the growing demand for social care in the next few years.
To address the said problem, the NHS reiterates the government should consider implementing a “social insurance system” and raise the premium payment to add home support and nursing care for the elderly while minimizing government spending. According to NHS, the social care premium could either act as an additional coverage of the national insurance or it could also act as a separate insurance system like in Germany.
So far, the said proposed tax funding received strong support from the public even if they have to increase their contributions as long as there is accountability and transparency in expenditures. According to the report, the workers want to ensure the funding would not be spent for other purposes.
The MPs also adds consideration must be given to the minimum-wage earners as well as the inclusion of their unearned income like investments and contribution to determine an individual’s contribution level.
However, the government will give first priority to extend free care to those who are in dire need of social care. The MPs also recommend imposing an additional inheritance tax on workers with estates valued above the threshold to pool the risk and prevent retirees who are in dire need of long-term social care from facing “catastrophic” costs.
Support for Chang
The report also emphasizes the need for the government to unite to address the impending crisis of the financial gap and lack of social care as the current generation approaches the retirement age. This was after Theresa May attempted to reform the social care funding in the last general election. The said reform was branded as the “dementia tax” and the opponents blamed her for the disastrous loss of support for the Conservatives.
Nevertheless, Theresa May had pledged to publish their proposals to reform the social care funding this Summer, but it has been pushed back to Autumn. The Health and Social Care Committee chairman Dr. Sarah Wollaston also echoes the MPs’ sentiment and states that the government can no longer delay finding a sustainable settlement for social care. He says the upcoming generation of retirees can’t wait out any longer, nor can we stop the time to wait for the government’s proposal. She urges the government to act now to revert the crisis instead of doing nothing.
More in Legal Advice
Beyonce and Jay Z’s Uber Luxurious Bel Air Mansion You NEED to See
Have you ever wondered what type of house Beyonce and Jay Z live in? The power couple has a $500 million property in...January 17, 2019
Will Smith is the ‘Fresh Prince of Calabasas’ With $20M Mansion that Has Its Own Zip Code!
When you have one too many millions in your bank account, you’ve gotta show it off like Will and Jada Smith. Having a...January 17, 2019
5 Great Tips to Making Mortgage Renewals This 2019!
Until most recent times, homeowners anticipated the renewal of their mortgages primarily because they were financial institutions looking to get in...January 17, 2019
Take a Look Inside Ellen Pompeo’s Opulent 1930’s-Inspired Mansion
Ellen Pompeo has an old-school taste when it comes to homes which is why she employed interior designer Martyn Lawrence Bullard to transform...January 16, 2019
Just Like the Star, Serena’s Clothing Line Stretches the Limits
Serena Williams exudes star quality. It is this particular trait that drives most of her undertakings. As a leader on the...January 16, 2019
The Top 5 Distinctions Between You and Celebrities When Buying Property
Celebrities live large. At least, that’s what the news headlines tell the world. One week the tabloids are showing Madonna’s Sunset...January 16, 2019
Research Shows Women are Better Investors
A quick look at Wallstreet will have you convinced that men are better investors than women. The same applies when you...January 16, 2019
Top Financial Tips for 2019
With the holidays gone, it’s high time to whip up your financial state in order. Here’s a guide on how you can...January 16, 2019
Retirement Income Seekers Are Now Turning to Annuity Purchases. And This Is Why…
Individuals are finally buying annuities once more, and for a number of solid reasons. A couple of years ago, there was...January 16, 2019