National Insurance 

Altmann warns of 'damaging' pensioner tax plan

Baroness Altmann said the burden of care funding fell on a very small group of people - those who don't qualify for NHS and still have some assets.

While those who get certain illnesses have their care costs covered by the NHS, others who need care have their funding assessed on a means-test basis.

She said the fairest solution would be to make as many people as possible pay towards social care.

She said: "I hope the forthcoming green paper will propose a range of measures that are fairer across and within generations, rather than singling out small groups and forcing them to pay for everyone else."

But Dave Penny, managing director at Invest Southwest, said the proposals put forward by Resolution seemed fair.

He said: "It is well known that national insurance is not in reality allocated to the NHS now and so it follows it would not in reality be allocated to care costs, if applied to pensioners.

"So whatever the destination of the funds, it is only fair to treat all workers equally. All workers should pay national insurance and it is a happy by-product that the nation's finances will improve consequently. This may well help with care funding."

carmen.reichman@ft.com

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