The European models which could inspire Burnham’s National Care Service ...Middle East

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Andy Burnham has declared reforming social care is among his top priorities as Prime Minister, arguing changes are essential not only for those actively needing support, but also for the long-term future of the NHS.

Speaking on Wednesday, he laid out an ambitious set of goals, including a focus on removing “budget battle lines” and enabling elderly people to remain independent for longer.

The Prime Minister also acknowledged “difficult decisions” would need to be made over how to fund any reforms, potentially leaving the door open to tax changes or spending cuts in other areas.

With a consultation process led by Baroness Casey now underway – in addition to her fast-tracked report and a planned discussion between the Government, Conservatives and Liberal Democrats – the size and scope of any reforms should become clearer over the coming months, but it is possible elements of Burnham’s plans are already in place elsewhere.

Here are the European models which could inspire a new system of social care in Britain.

Germany

In April, Re:State, a think tank with which Burnham has had links to in past, proposed the UK could adopt a variation of the German model for funding social care.

Under the proposal, which The Telegraph reported has been drawn up by civil servants at the Department for Health and Social Care, workers over 34 would pay a mandatory levy of 1.8 per cent on earnings above £6,240 into a fund invested on their behalf to cover care costs in old age.

This would effectively mirror the German system, in which all citizens pay into a ring-fenced social insurance fund once they begin earning.

Contributions are shared between the employer and the employee, with the latter paying 3.6 per cent of their earnings towards long-term care insurance.

There is a surcharge of 0.6 per cent surcharge for childless workers aged 23 and over based on the assessment those without children are likely to require more formal care in later life.

Retirees must pay contributions in full.

Re:State proposed the UK could adopt a variation of the German model for funding social care (Photo: Matt Cardy/Getty Images)

Ultimately, every German citizen receives some level of support, regardless of their wealth, with a national assessment tool used to assign each individual to a level of need.

Each level corresponds to a different monthly allowance, which was originally intended to cover around half of the cost of care, although that proportion has shrunk as those costs have risen over time.

Germany’s system does not protect against unlimited costs, although there is a minimum level of income each person must be left with after paying for at-home care.

Social assistance is available to those unable to cover the cost of their care outside of their assigned allowance.

In its report, Re:State noted Germany has “struggled to ensure the fiscal sustainability of its model” raising questions about whether the Government could effectively implement a version of the system without also imposing additional taxes.

France

As in Germany, France’s care model is based primarily on need, not means, which ensures all citizens receive some level of support.

While more complex than the German model, French residents also must contribute to funding via social security payments.

In 2023, employees typically contributed around seven per cent of their salary, while employers contributed around 13 per cent.

All French citizens must have health insurance, whether public or private, with the former covering everyone regardless of income or employment status.

Unlike in the UK, when individuals are assessed to determine the level of support available for aged care, the value of a primary residence is excluded from the calculation, mitigating the risk of any person being forced into selling their home to help pay costs.

However, the amount of state assistance available in France is capped and, with the exception of those earning under €933.89 (£800) a month, residents must pay out of pocket for the proportion of costs not covered.

While Reform UK was not invited to participate in talks over the future of social care in Britain, the party’s leader, Nigel Farage, has previously expressed support for a shift to a French-style healthcare system as part of efforts to address shortcomings in the NHS.

The Prime Minister acknowledged “difficult decisions” would need to be made over how to fund any reforms (Photo: Kirsty Wigglesworth/WPA Pool/Getty Images)

Denmark

Denmark is widely regarded as having one of the best social care systems in the world and could appeal to Burnham as it is free at the point of use – a key pillar of his original pitch for a National Care Service.

Citizens do not contribute at all to the cost of care in the Danish system, with payment only required to cover accommodation or hotel fees.

Even then, means-tested support is available for those who reside in residential care and a national cap on how much providers can charge for food, around £470 per month, is also in place.

Denmark’s system is entirely needs-based, with the country’s municipalities responsible for assessing and organising need according to a set of nationally determined principles.

This again appears to fit well with the Government’s stated aim for reforms, although it comes with a hefty price tag.

According to The Health Foundation, establishing an NHS-style system similar to the Danish model would cost £18.7bn, which would likely prove challenging to fund.

Denmark finances its social care system through one of the highest tax rates in the world, 45.2 per cent of GDP compared to 34.4 per cent in the UK, and while Burnham has signalled some changes could be needed to secure funding he has also maintained his Government will not abandon Labour’s manifesto promises.

That tricky political calculus could see the Danish model sidelined.

A final option, closer to home

While the Prime Minister has been insistent he will put “whatever political capital” he has into fixing social care in Britain, it remains possible the practical realities of a fragile budget and political headwinds temper his resolve in the short-term.

If cost is the determining factor, it’s possible Burnham could seek to nationalise the Scottish model as an incremental step toward bolder reforms.

Under that system, personal care – help with washing, dressing and eating – has been free regardless of wealth since 2002, while residents still pay for accommodation and other costs.

Adopting the Scottish model nationally would still come with a hefty fee, around £6bn extra in 2026-27 according to the Health Foundation, but would nonetheless remain cheaper than an NHS-style system.

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