Over-40s tax considered to fund elderly care in Staffordshire
Compulsory health insurance for over-40s should be introduced to help meet the rising cost of adult social care, says the leader of Staffordshire County Council.
Councillor Philip Atkins said the idea, similar to a scheme in Japan, would offer a medium and long-term solution to the local authority’s rising bill for looking after the elderly.
It has gone up from £200 million to £315m in a decade and has a major impact on the budget each year, forcing increases in council tax, set to go up 2.95 per cent next year, and axing of services.
Councillor Adkins said making people pay insurance premiums while under 40 would be unfair due to other financial pressures they are facing, such as paying off student loans and raising cash for a deposit for a house.
The idea of compulsory insurance has received backing of independent health think-tank Nuffield Trust, which in a report this year said ‘England could learn lessons from Japan to address the social care crisis’.
Charity Age UK has also praised the system, saying the country has a ‘most sophisticated’ care approach.
Adult care in Japan is partly paid for by compulsory insurance premiums, which are mandatory of people aged 40 or over and payments from users.
Councillor Atkins said: “Should we have something similar to the Japanese system where people aged over 40 start to contribute to an insurance system to pay for their old age?
“It could see them pay a little bit of extra money per month or year into an insurance scheme so that by the time they get to 75, 80, or hopefully 95, when they do need extra care there is an insurance pot to pay for it. It would be a good idea.
“Japan also face an ageing population and they have had to bring in this insurance policy so that the money is there in the future.
“It would help all councils in 20 to 30 years time. Long term, we need some insurance system in place.”
He added: “The nation needs to have an adult debate about how we fund adult social care going forward.
“It is a national issue and it is one which falls on county councils and the pressures leave us in the position we are in.”
On Tuesday, councillor Atkins said the council faced a £35m funding gap in next year’s budget.
