The first Caring Choices event has demonstrated a strong consensus that the government should invest more public funds in social care for older people, but also a growing acceptance that the individual and the family have a joint responsibility with the state for the costs of long-term care.
In a wide-ranging debate in Manchester on 26 April 2007, two-thirds of participants recognised that a private contribution was necessary.
Participants voiced concerns that the current social care system is unclear, unfair and inefficient. It was felt strongly that any new funding model should move away from the ‘postcode lottery’ that exists at the moment.
Participants discussed the potential of various mechanisms for privately funding long-term care, including equity release schemes and private insurance products.
Detailed discussion was constrained by a lack of knowledge about the pros and cons of what the market offers. Financial illiteracy and a lack of knowledge about financial products were seen as major problems.
Opinions tended to be cautious about ways to encourage people to spend privately on care:
Equity release is perceived to be of little use to those with modest homes
Many people cannot afford insurance premiums
Government guarantees or incentives need to be consistent over a long timescale. Those who were enthusiastic about private long-term care insurance wanted to know that any related tax reliefs would be sustainable
It would need to be clear whether care funding schemes were being encouraged by the government to release funds for the basic care package or as top-ups for people who wanted a higher level of provision
It was felt that tax incentives, for example on insurance premiums, would mainly encourage people who could already afford such products, and even then would not promote an unpopular product such as long-term care insurance
There was a broad consensus that younger generations are often in denial about the realities of old age, and will not plan ahead.
Long term care insurance: News update: May 2007
