Andy Burnham new tax on table for all over-34s who earn above £6,240

Workers could face a new tax to fund social care under plans being developed by Andy Burnham's government. Civil servants have drawn up proposals that would require workers to make mandatory contributions to a new privately managed fund to pay for their care in later life.

The plans, developed by officials in the Department for Health and Social Care, could fund a new care system costing 18 billion pounds a year. According to the proposals, a new levy on income could be set at 1.8 per cent of earnings above 6,240 pounds paid by workers over the age of 34. Under these calculations, an employee earning 50,000 pounds would pay an extra 788 pounds a year in tax, whilst an employee earning 80,000 pounds would pay an extra 1,327 pounds.

Burnham has previously committed to addressing the issue, stating "I will use whatever political capital I have to fix the social care system in England and start a conversation with the public about how to pay for it." He has indicated there are major changes the government can make before the next election and is understood to be committed to exploring a new system that would be free at the point of use, operating on the NHS principle.

The proposals have drawn comment from policy experts. Seb Rees, head of health at the Institute of Public Policy Research, said that to succeed where others have failed, the Prime Minister needs to set out a more ambitious vision for reform, not just protecting assets or easing NHS pressures, but investing in a system that helps people live well.

Sarah Woolnough, chief executive of the King's Fund, noted Burnham's consistency on the issue, stating "He could offer free personal care as a first stage help with washing eating and going to the toilet like they have in Scotland." The government is now preparing to engage the public in discussions about how best to fund the social care system overhaul.