Burnham to ditch triple lock pensions to fund social care

It was only on Sunday that Prime Minister Andy Burnham announced plans to make England’s social care free at the point of use.

During an interview with the BBC’s Laura Kuenssberg, Burnham admitted he didn’t know how he was going to fund the plans. But today, at the Labour conference, he announced changes to the pensions triple lock.

In his conference speech Burnham said the triple lock would remain in place for the rest of this parliament, but after the next election, the state pension would rise either in line with inflation or by 2.5% each year. 

‘This change will generate significant savings, which we will use to build up our National Care Service,’ Burnham said.

‘Some may not realise it, but older people with nothing more than the state pension or only a little more, can find themselves paying care charges today. Under my plan, this will no longer happen.’

Despite changing the pension system, Burnham added anyone living solely on the state pension wouldn’t have to pay income tax during this parliament. 

He said: ‘Pension that rises every year, no care charges and a high quality National Care Service to give peace of mind in later life.’

‘There’s only one real answer’

On the subject of the National Care Service, which was first proposed under Gordon Brown’s government in 2009, Burnham provided more detail about the system he wants to create.

‘There’s only one real answer. A person-centred, high-quality care service that starts in the home,’ the prime minister said. 

‘It is about people, not profit, which gives you peace of mind over care needs in later life, which protects people’s homes and their savings and gives you the proper recognition to the care workers we will all need to rely on at some point in our lives.’

The former Manchester mayor claimed work on the scheme will start now, with plans to introduce it fully in the next parliament. He said: ‘Louise Casey’s review will advise us on exactly how and when, and I will seek to build the maximum national consensus around her recommendations.’

Industry reactions 

Since the news broke this afternoon, social care experts have been sharing their views. We’ll bring you more reaction as it comes in.

Caroline Abrahams, charity director at Age UK

‘We have an ageing population, we’ve been slow to adapt to this reality and a new deal for pensioners is long overdue so it’s great to see a government recognising this – but of course what really matters is what it contains. 

‘The prime minister’s commitment to social care reform is hugely welcome, after decades of dither and delay. A modern, progressive social care system, free at the point of use, would be transformational for older and disabled people, and their families too. 

‘However, much will depend on where we are by 2030 , including what level the State Pension has reached by then. We will need to be absolutely certain that those who are reliant on the state pension alone can attain a decent standard of living, and that means the government must have a cast iron plan to ensure no-one is left behind. There is much to do, including moving to a new approach whereby the older people on the lowest incomes actually receive the top up benefits they are due – at present fully one in three are missing out.’

Tim Coolican, partner and head of health and social care at Anthony Collins

‘While today’s speech has outlined the broad ambitions for social care reform, a National Care Service will stand or fall on how it meets rising demand whilst avoiding the postcode lottery and backlog of demand currently found in the NHS.  

‘Providers need to know who will commission services, how contracts will be funded and whether fees will reflect the real cost of providing good care. A more consistent national approach could help, but it must not leave providers navigating another layer of bureaucracy. At the same time, a National Care Service must still find ways for individuals to have real choice over their care and support. ‘

‘There is not yet enough detail for providers to plan ahead, but what they can do now is ensure that they, and the people they support, are actively engaged as the proposals take shape. 

Dr Jennifer Dixon, chief executive of the Health Foundation 

‘The prime minister’s pledge to fundamentally reform social care in England provides a generational opportunity to create a fairer, more generous system for older and disabled people, their families and carers. The changes implied by Burnham would be substantial.

‘Difficult questions and trade-offs will follow – not least how reform will be funded and how costs will be shared. While it’s not yet clear what will be included in the state’s offer under a new national care service, additional public investment will be needed to deliver a fairer and more universal system.

‘But the cost of continued inaction to people and their families is severe and an overwhelming majority of the public support the principle of a greater role for the state in funding social care.

Michelle Dyson CB, chief executive of Alzheimer’s Society

‘For decades, people affected by dementia have paid the price for political failure on social care. Today the Prime Minister has set out a vision to change that. 

‘Families have been pushed to breaking point by patchy support and impossible choices about how to care for someone they love. From his personal experience Andy Burnham, like the millions of people across the UK affected by dementia, understands why people can no longer be asked to wait for change.