Andy Burnham admitted Brits could face more tax hikes to fund his massive social care plan today.
The PM conceded the controversial move to downgrade the 'triple lock' on state pensions might not cover the bill – and suggested the NHS-style care service could take many years to introduce.
He declared that the triple lock – which has seen pensions rise by the highest out of inflation, earnings and 2.5 per cent each year – will go if the party wins the next election.
That is estimated to cost pensioners £15billion a year by the end of the next decade.
But economists have warned the move 'won't remotely pay' for the social care plan – even though it would only cover personal care, and some people will still have to sell homes to meet residential costs.
The plans for a 'new settlement' on care were unveiled by Mr Burnham as part of his big 'vision' speech at Labour conference yesterday.
Andy Burnham has admitted Brits could face more tax hikes to fund his social care plan
The new uprating system for state pensions is estimated to cut payments by £15billion a year by the end of the next decade
Paul Johnson, former head of the Institute for Fiscal Studies think-tank, said: 'I think we will have to pay a significant additional amount of tax in order to pay for what is effectively a significant additional leg to the welfare state.'
In a round of interviews following his speech, Mr Burnham acknowledged there could be a 'shortfall' in funding for the National Care Service.
He pledged to be 'honest' about 'where that money is coming from', leaving the door open to tax rises.
The PM told Times Radio: 'I will put a plan before the country at the next general election where we say this is our national care service, "this is how we will fund it".'
Mr Burnham added that with a care service, 'the NHS truly will be able to make savings, cashable savings, from a better social care system'.
He continued: 'And then if there's a shortfall, well, we'd have to be honest about that shortfall and say where that money is coming from.'
Mr Burnham also said there was a 'timing question' about when the service would be rolled out.
He told the broadcaster: 'What I've announced at Labour party conference is the big vision – a national care service that can work to NHS principles because then you can have a system that works from home to hospital and back again, a more efficient way of providing care rather than two systems – and the big enabling decision that unlocks a national care service, which is the adjustment to the triple lock.'
This Institute for Fiscal Studies chart shows how the state pension would be lower if the new uprating had been applied since 2010
The premier said finding funds for the scheme could mean implementation is delayed.
'You could obviously, if you wanted, put the time back, the date back, by which the service comes in,' he said.
'Because the triple lock decision will release the billions, more money will release as we go through the next decade, so there's obviously a timing question there.'
He suggested 2040 would be too late 'because the pressure on the NHS by that point – it's already intolerable'.