Green Paper could propose a new elderly care tax

Proposals to include an elderly care tax on all workers over 40 could be included in the Government’s social care Green Paper.

The idea was put forward by a panel of Commons select committees in the summer and they are based on a system in Germany where the over 40s put 2.5% of their wages to a ring-fenced pot for social care.

Matt Hancock told the Sunday Telegraph: “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 German, and it appears to be working there.

“One of the reasons I’m attracted to the proposal it 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.

“I’m prepared to have a range of options and see if we can build a consensus around one of them rather than be dogmatic about it.”

The social care Green Paper is expected to be published in December.

About the author