She said 'Eldercare' vouchers would help staff with care costs. She urged Chancellor Phillip Hammond to focus on care in tomorrow's Budget.
Baroness Altmann also wants to see the Government allowing tax free pension withdrawals for care and new Care ISAs introduced.
She said: “Employers could offer elder care vouchers (along the lines of childcare vouchers) which get tax relief as an employee benefit.
“The Chancellor could introduce a new type of ISA to help people save for care and could encourage people to switch existing ISAs into new Care ISAs. These could perhaps get an added Government bonus if the money is earmarked specifically for care. This would be a far better use of taxpayer money than subsidising Lifetime ISAs as retirement saving.
“This could encourage a maximum sum (perhaps up to £75,000) to be set aside, which could be passed on free of Inheritance Tax to form a Care Savings ISA for today's older generations and then passed on to next generations if not used. A 'family care savings plan' could help signal to families that Government won't cover most care costs.”
She also called for:
• Tax incentives for employers to help staff save for later life care or auto-enrolment
• Stamp duty breaks when older people downsize their home
She said: “The Chancellor faces a more favourable fiscal position than previously forecast and should seize the opportunity to address the social care crisis that is causing misery to many elderly people and engulfing the NHS. Philip Hammond could be the first Chancellor to introduce long overdue reforms of the broken care system.”