Category Archives: Pensions

The price of the Public Sector

Continue reading The price of the Public Sector


Torys announce Dementia tax on the Elderly

Today the Nasty Party strikes yet again. This time they are going after old people and their homes and financial assets. The spin on this is that as people get elderly they may incur costs for social care such as care homes. The Torys are claiming that no person would need to sell their home to fund this.

On the face of this this sounds like a good idea, however lets dig further into the plan. As we cannot trust what they say at face value. Remember the slogan making work pay, well what they actually meant wasn’t about helping workers at all, it was about cutting benefits and social welfare to drag those who relied on them into poverty.

Corporate subsidies by the tax payer under the Torys has reached a whopping £93Billion, more than the education, housing and welfare combined

Yes Poverty is the actual word, we now have 3.9million yes Million people in persistent poverty, and also looking towards record levels of child poverty by 2020!


Now back to the recent announcement. Like I said, at a quick glance, and listening to the sound bites, this sounds like a good plan! However not all is what it seems.

The threshold for the cap is £100,000 this is higher than the current £23,000 so on the face of it is a good thing, however the current cap only applies to those who receive state help when in private care homes. The tory policy will apply to any state help at all, from council care home, to even those who receive help within their own home.

So this policy will actually impact negatively on more people, and considering the value of the property, the average being £215,000.

They are also stating that its a difficult choice that has to be made, due to the limited budget available. However does this stack up?

Currently education spending is approximately £60billion, Housing benefit is £27billion welfare is about £3 billion.

Corporate subsidies by the tax payer – a whopping £93Billion, clearly this isn’t a case of a limited budget, but a clear choice on the value they place on a human life.

But I hear you say, they state that a person wont have to sell their house, unlike currently. Well this isn’t as clear cut as they make it. The way in which this will be don will be through the banks, with equity release products.

So a hard working person will buy a house (if they can afford it these days) pay a mortgage and interest to the bank. Then when its paid off they may get to live in it mortgage free for a number of years, and if they happen to then need social care, essentially give it back to the bank.

This means that the generation behind them will most likely have to sell the property to cover the costs anyway, so it just moves the burden from one generation to another, but the house still gets sold any way. And although this isn’t a death tax (as the government are not the recipients), the interest on the equity release means the banks stand to profit finely from this, and also it runs the risk that the debt of their parents, actually then becomes their debt.

Along side the changes to how much you have to pay to access an estate,( which is going up from £500) could mean that a large portion of properties would go unclaimed, and then either be handed back to the bank, or claimed by the government estate.

This is just one issue with their manifesto and how it will benefit, the few and the wealthy, and that’s before we start on items like winter fuel payments, and the scrapping of free school meals.