LCP proposes opt out tax modelled on AE to pay for National Care Service

Social insurance model said to have ‘generated considerable interest’ with government

Alex Levy
clock • 2 min read
Former pensions minister Steve Webb said auto-enrolment could offer a solution to the "thorny problem" of social care (iStock.com/monkeybusinessimages)
Image:

Former pensions minister Steve Webb said auto-enrolment could offer a solution to the "thorny problem" of social care (iStock.com/monkeybusinessimages)

LCP has proposed an auto-enrolment (AE) scheme to help fund social care, with those over 40 paying 1p on the basic rate of income tax to build up discounts on their care costs over time.

Seeking to replicate the success of AE in pensions, the scheme would be arranged on an ‘opt out' basis, allowing the prime minister to fund his proposed National Care Service without breaching mani...

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