Labour's 'secret plan for a 10% death tax' raid on the estates of Middle Britain to fund social care for the elderly

Ministers are considering plans for a 'death tax' raid on the estates of Middle Britain to fund social care for the elderly. Labour is said to have carried out secret polls to see if voters would stomach a 10 per cent levy on their estates when they die.

It means that the families of middle income earners with estates worth £500,000 could be hit with a £50,000 extra tax bill when their relatives die, on top of inheritance tax.

During furious exchanges with the Conservatives yesterday Health Secretary Andy Burnham refused to rule out the prospect of a so-called 'death tax' levy.

Controversial: The poster issued by the Tories

The Tories have claimed that Labour has employed pollsters Ipsos Mori, who carry out research for the Department of Health, to conduct a survey in which people were asked if they agree to a 10 per cent levy on their estate when they die to cover the cost of care for the elderly.

The revelation has raised fears that Labour will target the better off, who would be hit with bigger care bills.

Middle income households are already forced to pay inheritance tax at 40 per cent on assets worth more than £325,000.

Senior government sources refused to deny the reports that Labour is canvassing opinions about a death tax levy.

It follows a bitter row between the main political parties over how to fund free social care in England. They all agree that reform is needed as many old people are forced to sell their homes to pay for care. But private cross-party talks aimed at finding a solution to the problem broke down in acrimony last week.

It led to the Conservatives issuing a controversial poster claiming that Labour wanted to introduce a £20,000 death tax to pay for free social care.

The Government's ageism tsar, Dame Joan Bakewell, and care charities yesterday renewed their strong criticism of the party political pointscoring of recent days. Dame Joan described the Westminster row as 'shameful'.

Mr Burnham said he will hold a non-partisan conference this week with charities and local authorities in an attempt to find a way forward.

He called on the Conservatives to put an end to 'negative' campaigning and urged the parties to find a consensus.

Health Secretary Andy Burnham refused to rule out the prospect of a so-called 'death tax' levy

Mr Burnham added that the Government would continue to consider all the options for funding social care.

The Tories dismissed the offer to attend Mr Burnham's care conference until Labour rules out the prospect of a compulsory tax to pay for social care.

Conservative Treasury spokesman Philip Hammond said: 'Last week Gordon Brown refused to deny that Labour were working on plans for the death tax – now we see they are actively canvassing opinion at public expense.'

Anger at the policy boiled over into the TV studios when the health spokesmen for Labour, the Conservatives and Liberal Democrats came face to face for the first time since their talks broke down.



Norman Lamb for the Lib Dems accused Tory Andrew Lansley of 'not being straight over the row and claimed he had agreed that a compulsory payment option would have to be considered.

Mr Lamb told BBC1's The Politics Show: 'Andrew's not being straight with people on this, because it was specifically recognised that there were both compulsory and voluntary options, and Andrew included that in his own draft statement of principles.'

Mr Lansley hit back: 'They (Labour) wanted a compulsory levy – a death tax – and I don't. There was never an agreement not to engage in normal political campaigning. We were having conversations I initiated those conversations – but at the same time Andy Burnham was pursuing a white paper with objectives which included a death tax levy.

'And we know now that actually he was out there undertaking research about whether he was going to have a 10 per cent tax on everybody's estate after death.'

Mr Burnham criticised Mr Lansley's 'scare stories' about Labour wanting a compulsory levy and cuts in benefits. 'There are no decisions taken on this issue,' he said. 'We've got options on the table, we need to explore those options.'



