Proposed 1p tax on over-40s to fund a new national care service
A voluntary 1 p income-tax levy on everyone over 40 could raise billions to help finance a future National Care Service.
Policy experts led by Sir Steve Webb have drafted a proposal to levy a voluntary 1 p on the income of all taxpayers aged over 40, modeled on the successful auto-enrolment pension system. The charge would apply only to basic-rate earnings between £12,570 and £50,270, limiting the annual cost to just under £380 per person, and could generate more than £3 billion annually even with opt-outs. Participants would receive a 4 % reduction in their care fees for each year they contribute, eventually qualifying for free social-care after 25 years of payments.
The plan is part of a broader discussion on funding a National Care Service, which Manchester Mayor Andy Burnham has vowed to create, alongside proposals to scrap the pension triple lock that the Department for Work and Pensions estimates could save up to £50 billion by 2050. While the levy aims to address immediate funding gaps, details on the overall financing and rollout timeline of the care service remain unsettled.
Why it matters
The levy could provide a new, sizable revenue stream for urgent social-care reforms in the UK.
How the sides frame it
MODERATE AGREEMENTCentrist coverage simply reports the former pensions minister’s suggestion of an auto-enrolment scheme for social care, while right-leaning coverage emphasizes a voluntary 1 p tax on over-40s, quoting cost estimates and benefit details.
CENTER
Centrist coverage presents the proposal as a straightforward suggestion by a former pensions minister to use an auto-enrolment model for funding social care.
RIGHT
Right-leaning coverage frames the plan as a concrete policy proposal—a voluntary 1 p tax on over-40s—to fund a national care service, highlighting financial projections and fee-reduction benefits.
The right emphasises
- voluntary 1 p tax on income of taxpayers over 40
- could generate more than £3 billion annually
- participants would receive a 4 % reduction in care fees and eventual free care
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