Labour is considering a 15 per cent “death tax” to pay for long-term care costs, The Telegraph reports.
Ahead of the 2010 election, Labour considered imposing a 10 per cent tax on people’s estates when they die but ditched the plans following a barrage of criticism.
However, Labour shadow health secretary Andy Burnham is reported to have told delegates at the Fabians Summer Conference that he is in favour of a new estates tax and that Labour is holding “internal party discussions” on the proposals.
He added: “There is a debate to be had on whether that is acceptable to the public.”
The Care Bill received royal assent in May and brings in a £72,000 lifetime cap on social care costs.
However, hotel and accomodation costs will not count towards the cap.