Will the coalition waste this chance to reform social care?

Osborne must not be allowed to strangle Dilnot's proposals at birth.

It was as long ago as 1997 that Tony Blair told the Labour Party conference: "I don't want [our children] brought up in a country where the only way pensioners can get long-term care is by selling their home." Nearly 14 years later, however, more than 20,000 pensioners do exactly this every year.

The publication of the Dilnot Report provides the coalition with a chance to succeed where Labour failed and reach agreement on a long-term solution to the care crisis. As expected, Dilnot, the former director of the IFS, has proposed a cap of around £35,000 on care costs (the report suggests any figure between £25,000 and £50,000 would be acceptable), and a rise in the means-tested threshold from £23,250 to £100,000. Since the cap does not take into account the cost of food and accommodation, Dilnot has also called for a separate cap of between £7,000 and £10,000 on these "hotel costs".

His proposals have been erroneously portrayed by some as another "tax on the middle classes". But the reverse is true. Under Dilnot's plan, the middle classes will pay less (the average bill is currently £50,300, with one in five facing costs of £100,000), while the state pays more. A £50,000 cap would cost the government £1.3bn, while a £25,000 cap would cost £2.2bn.

It's for this reason that some are already suggesting that the government, in the form of George Osborne, will strangle the proposals "at birth". One cabinet minister tells Benedict Brogan: "It's DOA, there's no doubt about it ... At a time like this we simply can't afford it. We'll have to return to this issue at a future date." To which one can only reply: hogwash. Any new system is unlikely to come into effect until 2015, by which time, if Osborne's calculations are to believed, much of the deficit will have been eradicated. Short-term fiscal considerations must not act as a barrier to long-term reform. The Lib Dems' imaginative proposal to introduce capital gains tax on profits from first homes above £1m is just one example of how the state could raise more from the asset rich.

The coalition also has rare opportunity to forge a cross-party consensus on this issue. The last attempt to do so was, of course, destroyed by the Tories, who cynically attacked Andy Burnham's proposed compulsory levy as a "death tax". Despite the Tories' electioneering, however, Ed Miliband, has made a "genuine and open" offer to reach agreement. It is one David Cameron must take. Along with Miliband, every charity in the land is agreed that delay is no longer an option.

Asked earlier today what his response would be if the proposals were "kicked into the long grass", Dilnot rightly replied: "Astonishment". The longer ministers prevaricate, the worse the crisis will get. If the Lib Dems want a chance to prove that they can exercise real influence on government policy, here it is.

George Eaton is political editor of the New Statesman.

Getty
Show Hide image

This is no time for a coup against a successful Labour leader

Don't blame Jeremy Corbyn for the Labour Party's crisis.

"The people who are sovereign in our party are the members," said John McDonnell this morning. As the coup against Jeremy Corbyn gains pace, the Shadow Chancellor has been talking a lot of sense. "It is time for people to come together to work in the interest of the country," he told Peston on Sunday, while emphasising that people will quickly lose trust in politics altogether if this internal squabbling continues. 

The Tory party is in complete disarray. Just days ago, the first Tory leader in 23 years to win a majority for his party was forced to resign from Government after just over a year in charge. We have some form of caretaker Government. Those who led the Brexit campaign now have no idea what to do. 

It is disappointing that a handful of Labour parliamentarians have decided to join in with the disintegration of British politics.

The Labour Party had the opportunity to keep its head while all about it lost theirs. It could have positioned itself as a credible alternative to a broken Government and a Tory party in chaos. Instead we have been left with a pathetic attempt to overturn the democratic will of the membership. 

But this has been coming for some time. In my opinion it has very little to do with the ramifications of the referendum result. Jeremy Corbyn was asked to do two things throughout the campaign: first, get Labour voters to side with Remain, and second, get young people to do the same.

Nearly seven in ten Labour supporters backed Remain. Young voters supported Remain by a 4:1 margin. This is about much more than an allegedly half-hearted referendum performance.

The Parliamentary Labour Party has failed to come to terms with Jeremy Corbyn’s emphatic victory. In September of last year he was elected with 59.5 per cent of the vote, some 170,000 ahead of his closest rival. It is a fact worth repeating. If another Labour leadership election were to be called I would expect Jeremy Corbyn to win by a similar margin.

In the recent local elections Jeremy managed to increase Labour’s share of the national vote on the 2015 general election. They said he would lose every by-election. He has won them emphatically. Time and time again Jeremy has exceeded expectation while also having to deal with an embittered wing within his own party.

This is no time for a leadership coup. I am dumbfounded by the attempt to remove Jeremy. The only thing that will come out of this attempted coup is another leadership election that Jeremy will win. Those opposed to him will then find themselves back at square one. Such moves only hurt Labour’s electoral chances. Labour could be offering an ambitious plan to the country concerning our current relationship with Europe, if opponents of Jeremy Corbyn hadn't decided to drop a nuke on the party.

This is a crisis Jeremy should take no responsibility for. The "bitterites" will try and they will fail. Corbyn may face a crisis of confidence. But it's the handful of rebel Labour MPs that have forced the party into a crisis of existence.

Liam Young is a commentator for the IndependentNew Statesman, Mirror and others.