What is Tony Blair’s 15% wealth tax? Plan to tax YOUR assets to pay for social care

The Government has committed to overhauling the struggling social care sector. But issues have arisen over how these plans will be funded. Tony Blair’s think-tank has put forward a controversial alternative.

From next year the Government will increase National Insurance by 1.25 percent to fund social care.

The tax rises are expected to impact around 25 million working Brits.

A number of ministers, including the former health secretary Jeremy Hunt, have criticised the tax rise, claiming it “disproportionately targets the young”.

Keir Starmer said: “We do need more investment in the NHS and social care but National Insurance, this way of doing it, simply hits low earners, it hits young people and it hits businesses.

READ MORE: Boris could be saved by Starmer in National Insurance vote

Although Labour may have avoided proposing alternative ways to fund social care – others have.

The Tony Blair Institute – a think-tank set up by former prime minister, Tony Blair, have come up with a new, controversial plan to fund the policy.

It would involve a new ‘wealth tax’.

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The report proposed Brits should contribute 15 percent of their asset wealth towards their social care costs – the state should then step in to fund the rest.

The plan would ensure wealthier people are less able to dodge paying higher taxes.

James Browne, head of work, income and inequality at the think tank said: “Capital gains are among the least heavily taxed form of income anywhere in the tax system: they are taxed less heavily than other forms of capital income, and far less than income from work.”

Although this plan would see the working population avoid paying higher taxes, many Brits would likely be angered that their hard earned property could be at risk to fund their social care.