• Conservatives hit out at Labour and Lib Dem ‘death tax’
• Tory proposal would force elderly to sell homes, say critics

The political parties traded blows over the vexed issue of how to pay for care of the elderly in the run-up to the first debate between the three main health spokesmen today.

The conference was organised by Age UK, Britain’s largest charity representing older people, after weeks of angry exchanges between the parties and the collapse of consensus talks between Andy Burnham, the health secretary, and his opposite numbers, Andrew Lansley of the Conservatives and Norman Lamb of the Liberal Democrats.

The charity said recent polls showed six out of 10 people thought politicians were not working together adequately to improve the care and support for older people.

Yet the parties were quick to point out the inadequacies of each other’s proposals. Labour and the Lib Dems appear to favour a compulsory, comprehensive scheme to cover health costs, which the Tories have called a “death tax” with a £20,000 bill. The Conservatives, meanwhile, propose an insurance scheme, where the elderly would voluntarily pay £8,000 into a fund to cover the cost of care.

Labour and the Liberal Democrats say the Conservative plan would force many elderly people to sell their homes to fund care. Figures obtained by the Lib Dems show that 3.5m pensioner households do not have assets of £8,000 if their homes are excluded. This would leave two-thirds of households having to sell or release equity from their homes to pay for the private insurance scheme.

Norman Lamb, the Liberal Democrat health spokesman, described the proposal as a poll tax. “Many people on modest means will be wondering how the Tories could think it’s fair that they should pay the same amount for care as multimillionaires.”

The Tories hit back, accusing the Lib Dems of resorting to “smear tactics”, and said insurance fees would not be imposed on the poor. Wealthier pensioners could pay the premium by using their pension lump sum entitlement. “The average pension pot is worth around £25,000, indicating an average lump sum entitlement of around £6,250 which could fund the bulk of the joining fee,” said a Conservative spokesman.

The Tories say the only way for Labour to pay for its scheme is to impose a £20,000 “death tax”. Recent analysis shows the Treasury would raise more than £9bn a year at this level of taxation, which the Tories say is needed to cover the gap in funding. The spokesman said: “The government’s own green paper admits that a compulsory, state insurance scheme would mean people need to pay around £20,000. It’s not our figure, it’s theirs.”


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