A new tax being considered by ministers as a way to fund social care could raise up to £15bn a year, according to a new report.
The proposal would see a 2.5 per cent levy applied to the earnings of people over the age of 40, similar to the model used in Germany.
The revenue generated by the new tax would go into a ring-fenced pot used to fund social care.
A government green paper on elderly home care is due to be published before Christmas.
Research suggests the German-style system could raise half of the money needed to plug the gap in social care funding .
Under the proposal, people receiving care would be given cash pay-outs to enable them to pay care agencies or family members.
The House of Commons health and local government committees said in a joint report that the levy should be paid only by people over the age of 40, including pensioners over the age of 65.
The proposals are similar to a scheme in operation in Germany and Japan.
Read more about the proposals here
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