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Burnham is urged to impose a 1p income tax raid on over-40s to fund his £3.5bn social care plan

Andy Burnham, who has vowed to establish a National Care Service, under a proposal that would see contributors earn a 4% annual discount on care costs for each year they pay in.
Andy Burnham, who has vowed to establish a National Care Service, under a proposal that would see contributors earn a 4% annual discount on care costs for each year they pay in.
An elderly couple reviews their finances at home — pensioners who stand to lose the triple lock, which Andy Burnham has proposed abolishing to help fund a new National Care Service.
An elderly couple reviews their finances at home — pensioners who stand to lose the triple lock, which Andy Burnham has proposed abolishing to help fund a new National Care Service.

Sir Steve Webb, a former pensions minister, is calling on Prime Minister Andy Burnham to automatically enrol 23 million taxpayers aged 40 and over — including 8.6 million pensioners — into a new social care levy averaging £31 a month. Government officials are said to be examining proposals from consultants LCP under which over-40s would see their income tax rise by 1p in return for a reduced future care bill. Designed along the lines of workplace pension auto-enrolment, the scheme could raise more than £3.5bn a year even after accounting for opt-outs.

After 25 years of contributions, participants would be fully exempt from personal care costs — protecting life savings from bills that can exceed £100,000.

Burnham intends to finance his National Care Service in part through abolishing the pension triple lock, though economists warn the savings could amount to nothing in the early years.

The levy would only apply to basic-rate earnings, capping the maximum annual charge at just under £380 a year.

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