The 2017 Conservative manifesto includes a commitment to funding social care through individual payments, capped so that nobody is left with less than £100,000.
This policy, widely condemned as a “Dementia tax” is deeply unfair. It would in effect mean that someone with a long term illness would face a tax rate of 100% on assets (including property) over £100,000. Inheritance tax currently stands at 40% on assets above a variable threshold, between £325,000 and £850,000.
In other words, Conservative tax policy will penalise anyone with a long-term, condition.
This, of course, has sparked backlash, as well it should. It is therfore unsurprising that today saw a Conservative u-turn. Theresa May announced that alongside this level of assets below which a person will not have to pay for care, there will be an absolute cap on the contributions any person will be required to make to pay for their social care.
I’ve blogged about u-turns in the past, and continue to believe they can be a public good. I’m glad Theresa May’s Conservatives have realised that their proposals for funding social care were deeply unfair. I’m glad they have announced this policy change, capping the amount anyone will be required to pay (though they have not specified what that cap will be). Im glad they are willing to change their position when flaws are highlighted (if we are going to have another Tory government, I’d rather it were one which changes its mind when presented with new evidence),
But this policy change does not go far enough. A system which makes an individual pay for their own care, regardless of how it is capped, is inherently unfair. Rather than sharing the burden of unforseen and uncontrollable medical costs fairly across society, it penalises people for being ill. Let me repeat that. The Conservative policy forces ill people to pay for their care. This is entirely antithetical to the principles of the NHS. It is fundamentally unfair that two otherwise identical people will pay vastly different sums due to an accident of health.
A fair system would see everyone contributing to the country’s social care needs, in proportion to their ability to pay (it’s unpopular, but I increasingly see a larger role for inheritance tax in meeting care needs). This system does not do that. It makes some people pay through the nose, while others get away with paying nothing. This is not a way to build a more cohesive society. It may be that we need to use people’s housing wealth to cover care costs, but if that is the case, it should come out of everyone’s houses.
Don’t let the Conservatives fool you. They may have tweaked their policy, but in doing so they have only made it a bit less bad!