Morning Call: pick of the papers

The ten must-read comment pieces from this morning's papers.

1. Will Mitt Romney's defeat force a Tory party rethink? No chance (Guardian)
Many Conservative MPs can see what's going wrong for the party, but their prescriptions are all for more of the same, writes Polly Toynbee.

2. A good day for David Cameron, but a rout for the Tory Right’s vision (Telegraph)
David Cameron and George Osborne must learn from Mitt Romney’s defeat and rethink Conservative election strategy for 2015, writes Peter Oborne.

3. Our dangerous illusion of tech progress (Financial Times) (£)
The actual landscape around us is almost identical to the 1960s. Our ability to do basic things such as protect ourselves from earthquakes and hurricanes, to travel and to extend our lifespans is barely increasing, write Garry Kasparov and Peter Thiel.

4. The venerable FT is too valuable to sell off (Times) (£)
The market isn’t infallible. The sale of certain businesses is against the national interest, writes William Rees-Mogg.

5. There's a chance of a deal with Iran. Is a re-elected President Obama brave enough to seize it? (Independent)
Ahmadinejad's regime is worried, and not just about the currency crisis, writes Adrian Hamilton.

6. World crowds in on Obama’s second term (Financial Times) (£)
Mr Obama’s re-election has changed the dynamics of American politics, writes Philip Stephens.

7. The Greek books are still being cooked (Telegraph)
This week saw yet more austerity measures voted by the Greek parliament for yet another bail-out that won’t be repaid, writes Jeremy Warner

8. Jordan: threatened by the drama next door (Guardian)
As long as King Abdullah's regime continues to block genuine reform its ability to resist contagion from Syria's turmoil will weaken, writes David Hirst

9. Not long a bishop? Perfectly qualified then (Times) (£)
Justin Welby has had success in non-churchy experience, so the real world is not alien to him, writes Diarmaid MacCulloch.

10. Drop this Great British fetish with childhood (Independent)
For all the outcry over deviant stars, most abuse is committed by someone known to the child, writes Mary Dejevsky.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Theresa May's U-Turn may have just traded one problem for another

The problems of the policy have been moved, not eradicated. 

That didn’t take long. Theresa May has U-Turned on her plan to make people personally liable for the costs of social care until they have just £100,000 worth of assets, including property, left.

As the average home is valued at £317,000, in practice, that meant that most property owners would have to remortgage their house in order to pay for the cost of their social care. That upwards of 75 per cent of baby boomers – the largest group in the UK, both in terms of raw numbers and their higher tendency to vote – own their homes made the proposal politically toxic.

(The political pain is more acute when you remember that, on the whole, the properties owned by the elderly are worth more than those owned by the young. Why? Because most first-time buyers purchase small flats and most retirees are in large family homes.)

The proposal would have meant that while people who in old age fall foul of long-term degenerative illnesses like Alzheimers would in practice face an inheritance tax threshold of £100,000, people who die suddenly would face one of £1m, ten times higher than that paid by those requiring longer-term care. Small wonder the proposal was swiftly dubbed a “dementia tax”.

The Conservatives are now proposing “an absolute limit on the amount people have to pay for their care costs”. The actual amount is TBD, and will be the subject of a consultation should the Tories win the election. May went further, laying out the following guarantees:

“We are proposing the right funding model for social care.  We will make sure nobody has to sell their family home to pay for care.  We will make sure there’s an absolute limit on what people need to pay. And you will never have to go below £100,000 of your savings, so you will always have something to pass on to your family.”

There are a couple of problems here. The proposed policy already had a cap of sorts –on the amount you were allowed to have left over from meeting your own care costs, ie, under £100,000. Although the system – effectively an inheritance tax by lottery – displeased practically everyone and spooked elderly voters, it was at least progressive, in that the lottery was paid by people with assets above £100,000.

Under the new proposal, the lottery remains in place – if you die quickly or don’t require expensive social care, you get to keep all your assets, large or small – but the losers are the poorest pensioners. (Put simply, if there is a cap on costs at £25,000, then people with assets below that in value will see them swallowed up, but people with assets above that value will have them protected.)  That is compounded still further if home-owners are allowed to retain their homes.

So it’s still a dementia tax – it’s just a regressive dementia tax.

It also means that the Conservatives have traded going into the election’s final weeks facing accusations that they will force people to sell their own homes for going into the election facing questions over what a “reasonable” cap on care costs is, and you don’t have to be very imaginative to see how that could cause them trouble.

They’ve U-Turned alright, but they may simply have swerved away from one collision into another.  

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.

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