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PM Burnham says difficult decisions needed to fix England's 'unfair' adult care system - Finance news and analysis from Global Banking & Finance Review
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PM Burnham says difficult decisions needed to fix England's 'unfair' adult care system

Published by Global Banking & Finance Review

Posted on July 28, 2026

4 min read

· Last updated: July 29, 2026

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PM Burnham says difficult decisions needed to fix England's 'unfair' adult care system

Prime Minister Andy Burnham's Plans for Adult Social Care Reform

By Alistair Smout, Muvija M and David Milliken

Burnham's Commitment to Overhauling Social Care

LONDON, July 29 (Reuters) - British Prime Minister Andy Burnham pledged on Wednesday to take difficult decisions to overhaul England's adult social care system, saying he wanted to work with other parties to end unfair high costs for users that he likened to U.S. healthcare.

Successive governments have failed to reform adult social care, for which families can pay hundreds of thousands of pounds, after previous proposals were defeated by opposition parties who dubbed them a "dementia tax" or "death tax".

Burnham did not rule out tax rises to fund a new scheme and said that "scare stories" from newspaper headlines would not deter him from tackling a situation that will only get worse as the population ages.

"It's a major dereliction of public duty that parliament has not faced up to this," he told an audience at a care home in north London.

Asked if he could transform social care without raising taxes, he said that more was possible within existing resources, but some of the plans "will require difficult decisions."

"We will be honest with people about those," he said, adding that he would stick to a manifesto commitment not to raise certain personal taxes.

Personal Motivation and Political Context

Burnham's Personal Experience Inspires Drive for Overhaul

BURNHAM'S PERSONAL EXPERIENCE INSPIRES DRIVE FOR OVERHAUL

Burnham, who has seen a bounce in the governing Labour Party's poll ratings since he became prime minister last week, cited his father's experience of Alzheimer's as one reason why he was determined to fix the system and correct the "shameful" political record on care.

"I think social care in England is as unfair as American healthcare," he said. "The vulnerable pay with everything and it can completely leave them with nothing."

Plans for Reform and Building Consensus

To tackle the issue, he said he would expedite a review into the sector, develop a care workforce plan and engage with the opposition Conservative and Liberal Democrat parties to discuss the issue in the hope of reaching a national consensus.

Burnham said he was willing to stake political capital to overhaul the care system. He first tried, and failed, to reform social care funding as health minister in 2010, and said he had learned lessons from that episode. 

The Structure and Funding of Social Care in England

Comparison with the National Health Service

Unlike the National Health Service, which is free at the point of use, care homes are run by a range of providers, from large chains owned by international private equity groups to smaller family-owned businesses, charities and local government.

He said a national care service which was integrated into the health service in England would alleviate the pressures on both. Health and social care policy is devolved to the governments in Scotland, Wales and Northern Ireland.

Addressing Profiteering and Cost Issues

He also suggested he would tackle profiteering in the care sector, aided by unnecessary and dangerous cost-cutting, which he said was "fundamentally unacceptable".

Current Costs and Payment Structure

Depending on the level of medical need and location, residents pay about £1,400 ($1,900) a week privately, while local authorities are charged around £1,000 for similar care. How much the resident pays, and how much the state contributes, is determined by a person's level of wealth.

Expert Opinions and the Need for Action

Calls from Health Think-Tanks

Sarah Woolnough, chief executive of the King's Fund health think-tank, said one in seven older people were now expected to pay more than £100,000 in lifetime care costs and there had been "a decades-long failure to act, with attempts to fix the system now resting in Westminster’s graveyard of good intentions."

"This is the moment to seize the opportunity and show what social care can do to improve people's lives, whilst also relieving the burden of this broken system on the NHS," she said.

Exchange Rate Information

($1 = 0.7518 pounds)

(Reporting by Alistair Smout, Muvija M and David Milliken; Editing by Alex Richardson, Andrei Khalip and Hugh Lawson)

Key Takeaways

  • Burnham pledges to ‘grasp the nettle’ of social care reform and emphasize cross‑party cooperation amid fiscal rule constraints.
  • Labour is experiencing a “Burnham bounce”, with improved polling and his personal approval ratings rising.
  • Years of tightening eligibility have reduced state‑funded social care to 10% fewer older adults; local authorities now budget around £24.5 billion in 2024‑25.

Frequently Asked Questions

What will Andy Burnham announce about social care reform?
He will detail his approach to overhauling the social care system and seeking cross-party cooperation.
Why is reforming the UK social care system considered risky?
Reforming social care involves political risks and funding challenges, as governments have previously avoided tough decisions.
How does social care funding in England currently work?
Unlike the NHS, social care is means-tested and not free for most people, with strict eligibility criteria.
Why is urgent reform needed for social care in the UK?
Without reform, the NHS could face collapse due to hospital admissions that could be avoided with better social care.

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