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Press comment: MPs call for social care premium to fund personal care for all

27/06/2018

If you are covering the Housing, Communities and Local Government and Health and Social Care Committees' joint report which calls for a sustainable funding solution for adult social care, please find comment from Rachael Griffin, tax and financial planning expert, Old Mutual Wealth, part of Quilter Plc:

Rachael Griffin“Proposing sustainable solutions to the social care calamity is warmly welcomed. However, to get the public on board the government will need to clearly outline what people will get for the social care premium. Transparency is the key term in all of this.

“The solutions also need to be a cross-party consensus as the report rightly highlights. A tug of war over social care policy will not win the favour of the public or instill the level of confidence in the policy needed for proper long term planning.

“The proposal to tax those over 65 could mean retirees paying an element of national insurance tax for the first time. However, it is not clear if there will be a threshold on which this is applied.

“MPs have rightly expressed concern about the impact on intergenerational equality in solving the social care funding crisis. The proposals to restrict the payment of extra tax to the over-40s goes some way to address this, but on the other hand they also state that an extra amount of inheritance tax would need to levied on estates above ‘a certain threshold’. This could actually serve to increase intergenerational inequality by stemming the flow of money down through generations.

“IHT is tax on assets that have already been taxed and is therefore unpopular. Any move to increase it is loaded with risk for politicians as rising house prices over a number of years could see ordinary people easily caught within a social care tax threshold in what will be viewed as a tax on property wealth.  

“The Chancellor has already called for the comprehensive review of inheritance tax by the Office of Tax Simplification. This is a once in a lifetime opportunity to remove complexity and help the Conservatives fulfil their manifesto pledge to restore the contract between the generations. There is a risk that social care reform collides with this aim.” 

For more information contact

Tim Skelton-Smith02380 916 99807824 145 076tim.skelton-smith@quilter.com
Kathleen Gallagher023 8072 629307990 004932kathleen.gallagher@quilter.com
Alex Berry023 8072 626007741 151931alex.berry@quilter.com

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £118.7 billion in investments (as at 30 September 2019).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

The Quilter plc businesses are being re-branded as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Charles Derby Group (becoming Quilter Financial Advisers)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
  • Old Mutual International (becoming Quilter International in 2020)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

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This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.