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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Andy Burnham should put the damn social care tax on landlords and big occupational pensions

300 replies

CurdinHenry · Yesterday 13:30

Why is it always workers who pay

OP posts:
Dishwashersforever · Yesterday 18:15

Sweetpeasaremadeforbees · Yesterday 16:01

A 10% inheritance tax would be great for my MIL. She went into a care home over 5 years ago with assets of about £450 000. In that time she's also received about £20 000 per year after tax in pensions so another £100 000. So far she's paid out over £340 000 to the care home so frankly paying £55 000 out of the £550 000 when she dies would be great for DH.

I'm not sure a 10% inheritance tax would be enough to cover care for all and I have no confidence that it would be ring fenced anyway.

I think it would be the care part only? The bed and board would be paid by the person needing the care I imagine. You’d have to hope that carehomes wouldn’t just hike their prices up though.

JustMerelyHere · Yesterday 18:28

Tax pensions and people won't save properly and then we'll all end up funding their retirement. We should be encouraging people to save for their future and take responsibility for themselves.

LiuBei · Yesterday 18:40

Lipglossed · Yesterday 13:41

Agreed. I don’t mind paying more tax if we see real improvements in social care.

But why? The government spends more on the elderly than on children by a wide margin. I understand why it spends on children, they're not capable of paying for themselves. But if you've had your whole life to prepare for your old age, and have failed to do so, why should younger people pay for that?

LathkillDale · Yesterday 18:45

Seajaye · Yesterday 16:59

They may not be high earners but the point is the young are paying proportionately more tax, more for higher education, more for housing ,more for energy and more for their pensions than previous generations had to pay in.

the problem is exacerbated by current boomers living longer on average with complex health issues requiring care where insufficient money has been set aside for their care in the erroneous belief the state would have a bottomless pit of money funded by the next generation.

People paid the tax, the government told them to do. What else did you expect them to do?

You need to complain about the people in government at the time, not ordinary taxpayers. I bet at least over 50% of the electorate, eligible to vote, did not vote for the winning party in general elections in recent times?

magnomam · Yesterday 18:47

@LathkillDalebut do you understand now?

BiteSizedLife · Yesterday 18:49

Witchlite · Yesterday 17:49

My reason for excepting between husband and wife (include same sex etc) is because there is a state sanctioned partnership to share assets. So the tax should be applied after both have died.

It is not to punish anyone - just recognising the joint ownership in this instance.

if it is a punishment, it is against those who live together, but have not formed a civil partnership or marriage. However, this is usually a personal choice, as is the decision to leave everything to charity.

It is a shame you have to be in a romantic relationship in order for the state to recognise "your person".

Single people dont live in a vacuum. We usually do have a person who we call when something good or bad happens, when we have news etc. It can be a relative, a friend...

It is a shame the state doesnt recognise someone's nominated "person". It can only be a romantic person.

Same with corporate health insurance - also penalised. Colleagues add their person, their special someone - spouse or partner. I have a special someone (my mum) but i am not in a romatic relationship with her so i cannot add her. 😤

I hope i have explained that well enough but do you see what i mean?

the80sweregreat · Yesterday 19:00

People have paid higher paye taxes years ago ( can’t source it, but I’ve read about it on mumsnet historically) but the difference now is the price of everything we need to survive has increased so much it’s harder to live especially if your on your own. Houses rent , food , utilities, insurance , even owning a pet is huge and if you look at anything you need doing it’s always hundreds of pounds. People are struggling and even the ‘ broadest shoulders ‘ are finding it tricky if they have a young family and many need two incomes.
It’s so much harder now especially for the young generations. I feel sorry for them.

Swiftie1878 · Yesterday 19:16

CurdinHenry · Yesterday 13:37

To be clear I'm not saying instead of workers I'm saying the tax should not only be on workers

Landlords pay a shitload of tax, thanks to George Osborne.

Badbadbunny · Yesterday 19:20

AzureStaffy · Yesterday 17:40

No, there's no time limit on Deprivation of Assets. The 7 years refers to inheritance tax. Local councils will go over everything to see if a person has the means to pay towards their care and can claw money back if there's been an attempt to dispose of assets or cash.

Only if the "attempt to dispose of assets or cash" can be proven to be to avoid care costs. If it was done for other reasons, the council will have a very hard job to claw it back. True, there's no specific time line, but the more years between giving it away and needing care, the less the chance of the council being able to claw back.

Badbadbunny · Yesterday 19:21

LathkillDale · Yesterday 18:45

People paid the tax, the government told them to do. What else did you expect them to do?

You need to complain about the people in government at the time, not ordinary taxpayers. I bet at least over 50% of the electorate, eligible to vote, did not vote for the winning party in general elections in recent times?

People VOTED for low tax governments, so yes you can blame the people!

Livelovebehappy · Yesterday 20:15

I’d rather pay into a private healthcare scheme for my own care should I need it in old age. A majority of people don’t end up in a care home anyway. I’d rather take responsibility for myself than have my taxes increased to subsidise other people. Plus unless ringfenced, it’s doubtful increased taxes will be routed to social/health care. Also, care homes need to up their game. A lot of them are dire - unskilled staff, dirty, poor care. Generally run by people who only see pound signs, and really couldn’t give a toss about anyone residing there.

hattie43 · Yesterday 20:25

Seajaye · Yesterday 17:04

It is a fallacy to believe that you can conjure up money out of people who don't have any, for what ever reason The burden is always going to fall on those who have money.

The problem is more and more people will make sure they don’t have money . It’s becoming increasingly obvious that the incentive to work is diminishing . We’ve been conditioned to get a good education , get a good job , get a good salary , a house , a life and prepare for your retirement through sensible savings . If that is then taken away to pay for those who don’t do those things people will start asking what the point is . They probably won’t take that promotion and the stress that goes with it , they won’t do extra hours etc . Those that afford themselves a good standard of living will just make sure they give to their families / children earlier before they die . And how aggrieved will families feel who’ve just spent hundreds of thousands on care to find 2 years later they could pay 10% and had something left .
Personally I’m really pleased this is a cross party issue as something has to be done . I personally think 10% of the deceased’s estate is fair to support social care but I’m sure those who have money will do everything they can to minimise their estate so 10% of very little left is all they pay . It could backfire .

jetlag92 · Yesterday 20:32

DoughnutDreamer · Yesterday 13:55

Why landlords? I don’t understand the link between landlords and social care.

Me neither - probably some junior labour intern hoping to get brownie points for a weird idea.

We need to create wealth.

the80sweregreat · Yesterday 20:32

You can’t blame people though. For years politicians have been ‘
do as I say, not as I do ‘ and now people have become wise to to it all and want to look out for their own.
Im not saying it’s right , but it’s obvious governments don’t really look after you much! They just want your money , no wonder people hide so much. Or work the system. It’s not right , but they seem to be the ones who get on well!

Seajaye · Yesterday 20:33

hattie43 · Yesterday 20:25

The problem is more and more people will make sure they don’t have money . It’s becoming increasingly obvious that the incentive to work is diminishing . We’ve been conditioned to get a good education , get a good job , get a good salary , a house , a life and prepare for your retirement through sensible savings . If that is then taken away to pay for those who don’t do those things people will start asking what the point is . They probably won’t take that promotion and the stress that goes with it , they won’t do extra hours etc . Those that afford themselves a good standard of living will just make sure they give to their families / children earlier before they die . And how aggrieved will families feel who’ve just spent hundreds of thousands on care to find 2 years later they could pay 10% and had something left .
Personally I’m really pleased this is a cross party issue as something has to be done . I personally think 10% of the deceased’s estate is fair to support social care but I’m sure those who have money will do everything they can to minimise their estate so 10% of very little left is all they pay . It could backfire .

Edited

The system will collapse at the point when the money being paid in isn't enough to fund the services needed by those who can't or won't pay for them..

That's the point of having cross party consensus. I think they will also have to look at overall avoidance property trusts balance out who pays, even if it means tracing disposed of capital down the line to th recipients and collecting tax on that.

Darker · Yesterday 20:36

I’d like to see more done to help carers so that families can actually make it work. The current system is just all wrong.

AndSoFinally · Yesterday 21:08

EmmaStone · Yesterday 14:57

And for my 5% employer contribution to my pension, I have 32% deductions from my private sector job (tax, NI, pension), PLUS I make another 8% of gross salary payments into a personal pension scheme. I will still not have as big a pension as an NHS worker will.

NHS pensions aren’t all the same. They’re based on your salary. You’ll probably have a bigger pension than some NHS workers will!

CurdinHenry · Yesterday 21:35

Swiftie1878 · Yesterday 19:16

Landlords pay a shitload of tax, thanks to George Osborne.

No national insurance

OP posts:
Swiftie1878 · Yesterday 22:27

CurdinHenry · Yesterday 21:35

No national insurance

So no pension…

71% tax last year. Enough already.

LathkillDale · Yesterday 22:27

Badbadbunny · Yesterday 19:21

People VOTED for low tax governments, so yes you can blame the people!

Some people voted for low tax policies. As I said, I suspect the majority didn’t and I also suspect that just because a voter votes for one MP, it doesn’t mean they agree with every single policy in the whole manifesto. They might have voted on a single issue important to them. My MIL voted Conservative, because she’d always done - probably because they looked after pensioners. It doesn’t mean to say, she thought about them increasing university tuition fees for example, and agreed with that.

bert3400 · Yesterday 22:30

He needs to tax the private care homes, they make a fortune, pay their staff minimum wage for really important jobs. These care homes are parasites who prey on families in desperate times. £11,000 a month some charge...that friggin crazy

porridgecake · Yesterday 22:38

Sweetpeasaremadeforbees · Yesterday 16:01

A 10% inheritance tax would be great for my MIL. She went into a care home over 5 years ago with assets of about £450 000. In that time she's also received about £20 000 per year after tax in pensions so another £100 000. So far she's paid out over £340 000 to the care home so frankly paying £55 000 out of the £550 000 when she dies would be great for DH.

I'm not sure a 10% inheritance tax would be enough to cover care for all and I have no confidence that it would be ring fenced anyway.

Parents and PIL all ended up in care homes, 2 due to dementia, one had cancer and a stroke, one was blind and in a wheelchair. We did our best for as long as we could, but working full time, supporting dc through exams, topping up student loans means a lot of expense and being pulled in all directions. Especially if you haven't got family to share the load. All were self funding and the fees run through pension, savings and property very quickly.
Self funders subsidise the fees of the residents who are state funded by around 50%. So they pay their share IMO.
10% of the value of an estate seems a pretty good deal to me.

mumumental · Yesterday 22:44

Duvetdayneeded · Yesterday 13:33

You are reasonable because why should landlords pay for social care? Also why should people on big occupational pensions to pay more for social care? People tend to have bigger pensions because they’re either contributing a lot of their salary or they worked damn hard to get a good job.

The government needs to take a different approach to this because Scotland get this for free but England pay for it.

i think care homes are raking in something like £300 million a year Profit so the government should be thinking about setting Up council care homes and putting everyone where the government have got to pay for care in these rather than paying massive sums of money to private care homes who are just raking the money in. Most importantly these care homes where people are paying tens of thousands a month are paying those who actually hands in deliver the care absolutely pittances.

Just imagine how much profit they’d squeeze out of the already cash strapped NHS. Scary to think about.

porridgecake · Yesterday 22:52

The NHS is wasting hundreds of thousands of tax payers' money on ridiculous employment tribunals and compensation payments for avoidable deaths and serious injuries. God only knows how much inquiries into various scandals is costing. It needs a complete overhaul and a move to a better (European) system.

Pinkissmart · Yesterday 23:16

Duvetdayneeded · Yesterday 13:33

You are reasonable because why should landlords pay for social care? Also why should people on big occupational pensions to pay more for social care? People tend to have bigger pensions because they’re either contributing a lot of their salary or they worked damn hard to get a good job.

The government needs to take a different approach to this because Scotland get this for free but England pay for it.

i think care homes are raking in something like £300 million a year Profit so the government should be thinking about setting Up council care homes and putting everyone where the government have got to pay for care in these rather than paying massive sums of money to private care homes who are just raking the money in. Most importantly these care homes where people are paying tens of thousands a month are paying those who actually hands in deliver the care absolutely pittances.

Many people work damn hard, but it doesn’t mean it pays well. Careers can have value apart from a high wage

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