National care fund could be LTC base
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Thinktank Strategic Society Centre has set out a practical model to deliver long-term care funding, built around a national care fund managed by the private sector.
The SSC published a report this week looking at how to deliver a public-private partnership model for long-term care funding.
It proposes a £6,825 lump sum premium or a £14 monthly premium over a 40-year working career, would pay for a benchmark income of £150 a week for life for people no longer able to carry out at least three activities of daily living, such as eating or bathing. The premiums making up the national care fund would be paid into social investment funds managed by the private sector.
These funds would then be used to purchase immediate needs annu- ities, which could be bought for individuals in residential care at the point of need, for people over 65 who meet the criteria.
Annuities would be community risk-rated rather than individually underwritten to ensure claimants receive a consistent level of support.
SSC director and author of the report James Lloyd first put forward the idea of a national care fund in 2008.
The latest report draws on industry consultation to develop a national care fund model that works in practice.
Lloyd says: “There is an appetite for helping to find a solution to the problem of long-term care funding and the model we are putting forward provides a way for industry stakeholders to do this.”
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