Warnings over Burnham's death tax plan as new Labour leader says he is 'willing to expend a lot of political capital' to fund social care

By SAM MERRIMAN, POLITICAL CORRESPONDENT Published: 23:43, 17 July 2026 | Updated: 23:48, 17 July 2026 Andy Burnham last night sparked fears he will hit every Briton with a 'death tax', saying he is 'willing to expend a lot of political capital' to fund social care. The incoming Prime Minister has repeatedly backed the introduction of a 'levy on all estates' to fund social care after first proposing the idea as Health Secretary in 2010. Back then he suggested a 10 per cent levy could be deducted from the property of older people when they die to pay for a 'national care service'. The proposal was dubbed a 'death tax' by the Tories and never implemented after Labour lost the May 2010 General Election. But since then, Mr Burnham has repeatedly raised the prospect of enforcing such a tax to fund social care. In May he said he did not 'resile' from the proposal. Now new comments about funding social care made on the eve of Mr Burnham's anointment will spark fresh fears over the imposition of yet another Labour tax raid. Last night Shadow Exchequer Secretary James Wild said: 'Burnham has not done the hard work to put together a serious plan for Government and because of that he will do what Labour always do: raise taxes. 'The leader may have changed but this is the same old Labour. They want more tax rises to pay for benefits and grow the state.' Andy Burnham sparked fears of a 'death tax' on Britons after his coronation as Labour leader yesterday The high cost of social care means some people are forced to sell their homes to pay for it. Currently people with savings of more than £23,250 are not entitled to help with the cost of care from their local council. Mr Burnham was asked yesterday how he would fund his plans to reform social care and whether he would introduce a 'death levy'. He replied that he would 'look at the options as to how you make a universal social care system' and added: 'We'll come to those options in due course.' Speaking emotively about his experience with the social care system, as his father has Alzheimer's, Mr Burnham admitted the overhaul would 'require something difficult'. But he said he believed the British public would prefer that he faced them and told them the current system did not work. Speaking in Gravesend, Kent, shortly after being named Labour leader, Mr Burnham said: 'My dad has Alzheimer's and you see what the staff have to put up with. It's not their fault, the system's broken. You can't leave social care like this.' Asked whether a death duty could be introduced to cover the cost of reforms, Mr Burnham said: 'People are paying for care in the most unfair way. The more vulnerable you are, the more you end up paying. 'That's the worst of all worlds and people lose everything that they'd worked for.' In May, Mr Burnham said: 'There's a great resentment about inheritance tax so take that away, perhaps, and look at a care levy.' The new PM is to embark on a ‘listening tour’ of Britain next month to persuade people he will not just govern for the North. Allies of Andy Burnham fear his constant references to Manchester risk alienating voters in the South. But, in a speech to mark his coronation as Labour leader yesterday, he said: ‘I will be a leader for the North, the South, the East and the West. For Scotland, Wales and for Northern Ireland.’ He has already pledged to set up a new outpost of No 10 in Manchester. He is also expected to pack his cabinet with members of Labour’s so-called ‘Manchester mafia’, including Angela Rayner and Lucy Powell.