Robert Jenrick, Treasury spokesman for Reform UK, has pledged to overturn any proposed “death tax” on inheritances designed to fund social care reforms advocated by Prime Minister Andy Burnham. The proposal under consideration includes a 10 percent social care levy on all inheritances, intended to generate increased investment in a social care system described by Mr. Burnham as “broken.”
Speaking at a press conference in London, Mr. Jenrick criticized the levy as “cruel and punitive,” emphasizing its potential impact on families. He warned that such a tax could burden relatives with significant unexpected expenses, citing an example of a nurse’s family in Mr. Burnham’s Makerfield constituency who might face an additional £30,000 in death duties on an estate valued at less than the current £325,000 inheritance tax threshold.
Mr. Jenrick also voiced frustration at being excluded from “all-party” discussions on social care reform convened by Mr. Burnham, describing the move as “insulting.” He noted that Reform UK oversees social care delivery in 30 local councils and expressed willingness to participate in talks provided tax increases, such as the proposed levy, are not supported. Instead, he suggested the government should prioritize cuts to foreign aid and welfare spending as alternatives for funding changes in social care.
Prime Minister Burnham has long supported the idea of a social care levy and revealed his government’s intention to consider it as part of a broader review launched this week. While acknowledging that reform will likely necessitate increased taxation amid the current post-war high tax burden, Mr. Burnham refrained from committing explicitly to specific measures. He stated that more efficient use of existing resources would be the first step, but admitted that more “difficult decisions” around funding may be required.
Other financing options under consideration include a 2p income tax increase targeted at workers aged over 34. However, critics of the levy have labeled it a “death tax,” arguing it unfairly penalizes families at vulnerable moments.
The social care sector in the UK has faced longstanding challenges related to funding and sustainability, and policymakers continue to search for a viable solution. While Mr. Burnham’s proposals aim to secure additional revenue to overhaul the sector, opposition voices like Mr. Jenrick’s advocate for alternative approaches that avoid placing new tax burdens on inheritances. The ongoing debate highlights the complexity and sensitivity surrounding the future funding of social care services in the country.