Thursday, February 14, 2013
UK Health Secretary Jeremy Hunt reports that Prime Minister David Cameron's government will raise more money through inheritance tax to fund planned improvements to financial support for the elderly. When the measures come into force in 2017, the government will step in when any individual pays over 75,000 pounds for old age care. Those with less than 123,000 pounds will receive help sooner. The government aims to encourage wealthier people to take out insurance or use pension products to cover the 75,000 pound cap.
Successive governments have been ignoring the issue of social care for too long, and Hunt comments that this has led to "an unfair system that has seen people selling their homes and losing nearly everything they've worked for to pay for their care."
See Robert Hutton, U.K. Will Use Inheritance Tax to Fund More Elderly Care, Bloomberg, Feb. 11, 2013.