Funnel more tax towards social care, says CIPFA

The Chartered Institute of Public Finance and Accountancy (CIPFA) has urged the government to funnel more tax towards social care as part of its social care Green Paper wish list.

Part of a submission made to the select committees on health and on local government, the wish list also recommends setting the tax take dedicated to health and social care at 24 per cent, rather than the current 22 per cent, to enable an extra £14 billion to be invested.

It also suggests revisiting all the spending programmes that support older people, such as the triple-lock on pensions and the Winter Fuel Allowance, and consider reallocating funds based on need and effectiveness, as well as protecting individuals from the possibility of very high social care costs by finding a means of pooling risks.

Rob Whiteman, chief executive of CIPFA, said: “The Green Paper is our best hope at ensuring there will be a long-term solution to the social care funding crisis. So it is vital that the government seizes the opportunity to make real and lasting change by exploring more radical funding options, including increasing the sector’s tax take. No stone should be left unturned. The government must have the courage to evaluate current spending programmes, such as the Winter Fuel Allowance, in terms of their effectiveness and question whether money could perhaps be better spent elsewhere.”