It was a pleasure to join The Filo Project at Downing Street earlier today to support their campaign to end the 'dementia tax'.
The Filo Project offers unique, award-winning day care within hosts’ homes for small groups of socially isolated older people with early to moderate dementia.
Unlike the NHS, dementia care is not free, and families must cover all or part of the cost themselves.
The Filo Project is a not-for-profit organisation but VAT rules stipulate they must charge families an extra 20% on the vital day care they provide. This is because they are a Community Interest Company and not a state-regulated institution or charity.
For families who pay the full cost of dementia care themselves, this additional cost burden of VAT (based on someone attending day care two times weekly) is nearly £2,000 per year (£1,768).
The Filo Project is therefore joining calling for the Government to change the VAT rules so that not-for-profit organisations which deliver welfare services are exempt from VAT.
As well as supporting the organisation today, I have also written to HM Treasury along with fellow Devon MPs to highlight their campaign, and hope to see this situation put right in the upcoming Spring Budget.