Wales to consult on social care tax

The Welsh government is to look more closely at the potential for introducing a tax increase to cover the rising costs of social care

A consultation on possible reforms to social care is due to start this summer, according to health minister Vaughan Gething.

In a BBC Wales interview he reported that the state spends about £1.2bn on adult social care every year, and the cost is predicted to grow between £30m and £300m by 2023.

The consultation is set to look at a number of issues, including income tax rises, creating a new social care levy and changing the fees people pay.

The Welsh government commissioned an independent report by economist Professor Gerald Holtham in 2018, looking at how to fund future care costs.

This concluded that ‘a reasonably moderate tax on incomes or increase in basic income tax could provide the funding required to alleviate social care concerns for the elderly.’ 

The report suggested a tax of between 1% and 3%, which would be dedicated to this specific issue in order to improve public acceptability.

Tax contributions would depend on age as well as income, with those in their fifties paying four times more than those in their twenties.

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