New talks over "death tax"

The UK coalition government is now considering reviving the old Labour idea of impose a so-called ‘Death Tax’ on the elderly. A commission will be set up by Health Secretary Andrew Lansley to look at the option of a compulsory levy, notwithstanding that Lansley previously campaigned during the general election to attack Labour’s plans.

The commission has apparently been asked to report on "how best to meet the costs of care and support as a partnership between individuals and the state." They will be "free to propose a compulsory tax" if that was one of the options it considered appropriate.

The original Labour idea was for pensioners to pay a lump sum in the region of £20,000 to pay for their care in old age. The Conservatives criticised the plan, dubbing it as a ‘death tax’, but nevertheless included in their own manifesto that a similar scheme with a charge of £8,000 should be considered.

It is estimated that an additional 1.7 million people could need long term care within the next 20 years. Neil Duncan-Jordan of the National Pensioners Convention called the idea a "betrayal" and described the commission as "political expediency." Critics warn that it is responsible middle-class property owners who will be hit most if the scheme is introduced, and that thousands may haveto sell their homes to fund the compulsory payment.