Allow pensioners to deduct essential care costs from taxable income

Many older people in the UK are required to fund their own care due to limited provision from the NHS and local authorities. This includes residential care and 24-hour home support, which are often necessary for basic dignity, safety, and quality of life.

At present, these costs must be paid from income and savings that have already been taxed. In addition, pensioners may still be required to pay income tax on remaining income, creating a significant financial burden.

Unlike discretionary spending, care costs are unavoidable for those with serious health conditions or reduced mobility. Without adequate care, individuals may deteriorate and require more intensive and costly state support, such as hospitalisation.

We believe essential care costs should be treated similarly to necessary expenses in other contexts. For example, businesses are permitted to deduct legitimate operating costs before tax. A comparable principle should apply where individuals face unavoidable care expenses.

We propose that pensioners be allowed to deduct essential care costs from their taxable income, either fully or up to a capped amount, with appropriate safeguards such as clear eligibility criteria and means-testing.

This would help ensure a fairer tax system and reduce the financial strain on those who have contributed throughout their working lives.

My father’s care cost over £6,000 per month. Following more than a year in a care home during and after Covid, this amounted to over £72,000 per year—far beyond what most people earn, and a significant drain on my mother’s resources.

Now my mother requires 24-hour support herself. Her care costs £1,107 per week, with additional expenses—such as night-time support—adding further to that total (for example, an extra £350 last month alone).

These are not choices. They are necessities—basic requirements for safety, dignity, and day-to-day living.

Yet all of this is paid from income and savings that have already been taxed. In addition, she continues to pay tax on her remaining income, even though it is effectively used entirely to fund her care.

I believe this is fundamentally unfair.

That said, this is not about my family alone. My father has passed, and realistically, my mother will not benefit from any policy change that might result from this campaign.

But this issue has concerned me for some time. It affects thousands of families across the UK, and many more will face the same situation in the years ahead.

This is why I believe it is important to raise the issue now—not for personal gain, but in the interest of fairness.