Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of easing taxes for elderly residents who are privately funding their care home place.

There are a wide range of factors to take into consideration when introducing a tax relief. These include how effective the relief would be at achieving the policy intent, how targeted support would be, whether it adds complexity to the tax system, and the cost.

Tax reliefs are typically of greatest benefit to those paying higher rates of tax. Furthermore, new reliefs also add complexity to the tax system and are likely to result in similar calls for reliefs on other forms of personal expenditure or income, which others may argue are equally deserving.

To support social care authorities to deliver key services, in light of pressures, the Government is making available up to £3.7 billion of additional funding for social care authorities in 2025/26, which includes a £880 million increase in the Social Care Grant. This is part of an overall increase to local Government spending power of 6.8% in cash terms.

Moreover, the Government is making available around £4.6 billion of additional funding for adult social care in 2028/29 compared to 2025/26, to support the sector to improve adult social care.

The Government recognises the significant challenges facing the adult social care system and is committed to transforming the sector and supporting the care workforce. Baroness Louise Casey is leading an independent commission to build consensus on reform. The first phase will report in 2026 and will focus on how to make the most of existing resources.