Revealed: How far Boris Johnson’s manifesto-breaking ‘working-class dementia tax’ changes will deepen regional inequality

The Tories’ working-class dementia tax will disproportionately hit families in the Midlands and the North of England, reveals new research from Labour.

It comes as Labour leader Keir Starmer challenged Boris Johnson at Prime Minister’s Questions over the broken promises and unfairness at the heart of his manifesto-busting plans.

Labour’s research shows that the changes to the Government’s social care plan this week means:

• The average homeowner in two-thirds of Northern areas will have to pay more towards their care

• In a third of areas in the Midlands the average homeowner will also face higher costs

• The average homeowner in not a single constituency in London or the South of England will be affected.

Under changes that scraped through parliament this week, homeowners with houses worth under £186k will be hit with higher costs, while those with homes worth over £186k will be unaffected.

A person with assets worth £100,000 - most of it tied up in their own home - will now contribute 80 per cent of their wealth to care costs and almost certainly lose their home.

Meanwhile someone with assets worth £1,000,000 would lose less than 10% of their wealth, and therefore be more likely to keep their home.

Keir Starmer MP, Leader of the Labour Party, said:

“Another broken promise from the Prime Minister means families across the country still face the catastrophic prospect of selling their home, while paying more in taxes to protect the mansions and estates of the wealthiest.

“It’s a working-class dementia tax.”

Ends

Notes to editors:

• The average house is worth under £186k in 107 constituencies in the North of England – compared to 0 across London and the South East.

• Constituencies where the changes are likely to hit the average homeowner hardest include Workington (average value £160k), Barrow and Furness (£155k), Don Valley (£155k), Redcar (£133k) and Bishop Auckland (£125k).

• Homeowners in the North East will be particularly badly affected, with average house prices under £186k in nearly nine out of ten constituencies.

• The changes will also affect the average homeowner in 34 constituencies in the Midlands, around one in three.

• This adds a further blow to northern communities as the Government sells them out by rowing back on promises to build new high-speed rail across the region

• Andrew Dilnot, author of the report that informed the Government’s own plans, said he was “very disappointed” by the changes that “finds savings exclusively from the less well off.”

• House of Commons library analysis looked at assumed social care costs of £650 a week and looked at the amount of spending that will class as contributing towards the £86,000 care costs cap based on differing levels of assets.
  
  
  

•  The analysis shows that amendment to the Care Act, will see

• • Those with £25,000 in savings or house value using up 20 per cent of their assets, compared to just two per cent under the original proposals

  • Those with £50,000 in savings or house value using up 60 per cent of their assets, compared to 36 per cent under the original proposals

  • Those with £75,000 in savings or house value using up 73 per cent of their assets, compared to 55 per cent under the original proposals

  • Those with £80,000 in savings or house value using up 80 per cent of their assets, compared to 75 per cent under the original proposals