Govt announces chair of long-term care commission
Share
The Government has launched its commission on long-term care and appointed economist and broadcaster Andrew Dilnot as its chair.
The Commission on the Funding of Care and Support will look at a range of funding ideas including both voluntary insurance and partnership schemes, reporting within a year.
Two further commissioners have also been appointed, Lord Norman Warner and Dame Jo Williams.
The commission will look at the best way to meet care and support costs as a partnership between individuals and the state, how an individual’s assets are protected against the cost of care, how public funding for the care and support system can be best used to meet needs and how to deliver the chosen option, including timescales and impact on local government.
Health Secretary Andrew Lansley says: “By 2026, the number of 85 year olds is projected to double. In the next 20 years we estimate that 1.7 million more people will have a potential care need than today.
“We know that one in five 65 year olds today will need care costing more than £50,000, which could force many to sell family homes. The answer is clear - we must develop a funding system for adult care and support that offers choice, is fair, provides value for money and is sustainable for the public finances in the long term.”
Andrew Dilnot adds: “There are not going to be any easy answers, and I know difficult decisions will have to be made. However, I am looking forward to examining all the issues, and listening to the ideas of those who have been working on care and support over the past few years. This has been a hotly debated topic over recent months. It is now my job to consider the best way forward and offer concrete recommendations to Government.”
Dilnot was director of the Institute for Fiscal Studies from 1991 to 2002 and has been a member of the board of the National Consumer Council and of the Office of Science and Technology Review of the use of science in the Office of the Deputy Prime Minister.
He has served on the Social Security Advisory Committee, the Retirement Income Inquiry, the Balance of Central and Local Government Funding Inquiry, the Rowntree Committee on the future costs of long term care and the Ageing Population Foresight panel.
Dilnot is principal of St Hugh’s College, Oxford and a pro vice chancellor of Oxford University.
He was also presenter of BBC Radio 4’s series ’More or Less’.
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (7)
Andrew Harwood | 20 Jul 2010 12:29 pm
This subject is long overdue and one that I had written on many years ago.
In my opinion the most appropriate solution would be to combine private pensions with long term care. When someone is taken into care the whole of the pension fund should be released to pay for the cost and only when these funds are exhausted should state benefits kick in.
Therefore, the only cost to society would be the residual cost. Those that do not have pensions would need to be funded by the State but a compulsory insurance scheme may be used although I am doubtful that this group of people could afford the additional cost.
Unsuitable or offensive? Report this comment
Anonymous | 20 Jul 2010 1:03 pm
What about the remaining partner, if any? They may not have any income and may be reliant on the other persons pension fund.
Unsuitable or offensive? Report this comment
Andrew Harwood | 20 Jul 2010 2:41 pm
Clearly there are details that need to be discussed. A dependent beneficiary of the private pension scheme would be entitled to that part of the pension that provides the widows benefits, but in practice the pension would be used in its entirety to fund the cost of long tem care during the lifetime of the pensioner in any event but would ordinarily cease on death especially if an annuity is purchased..
Unsuitable or offensive? Report this comment
Simon Chalk - Equity Release Planner | 20 Jul 2010 3:36 pm
I'm not anticipating any great surprises resulting from the report findings. We already know that the State cannot fund the cost and that almost 1 trillion pounds of equity sits tied up in the homes of the over 65's. Equity release more than any other funding mechanism will support those needing care in the generations to come.
Unsuitable or offensive? Report this comment
Paul S | 20 Jul 2010 3:56 pm
Allowing pension pots to be used to purchase an impaired life annuity is certianly an option for a single person, but what about if they have a spouse etc? What happens if the pension pot has already been used to buy an annuity which is already in force....tricky, more so as the average pension pot in the UK would cover an EMI bed for less than a year.
Basically the country cannot afford to pay, and people's estates very quickly get denunded down due to the insane costs of LTC.
This of course leads to the issue that someone who has saved, looked aftet their money etc has to pay...someone who spent it all on wine, women and fast cars! (or never had it in the first place) get LTC for free. Not exactly fair.....
So, where do we go? The green paper from last year was heavy on bull and light on actual proposals. The Tory plans appear to be vastly underestimating the scale of the problem......
Unsuitable or offensive? Report this comment
Tom Scott | 21 Jul 2010 10:11 am
The real problem with the state funding care is that of inheritance. If the state were to fully fund care it would be seen as protecting the assets of the rich for the next generation, at the expense of everyone else.
The pension pot idea is interesting, but when I look at the average age of my clients (88) I cannot imaging that there is much left in their pensions. Most are widowed so the issue raised above of the spouse would be an occasional problem rather than the norm.
A lot of the problems of funding long term care can be resolved with good financial advice - let's hope this commission recognises this.
Unsuitable or offensive? Report this comment
Lady Wilson | 29 Jul 2010 6:07 pm
I would appreciate contact..presently working (previous to "birth" of Commission ) with John Radcliffe Operations Re: Pilot Study which will include Older patients needing to return home from JR /and access to necessary Care via younger generation....In touch with JR.(.Operations Director): Social Services ....University Careers Office & University Institite of Ageing
Would appreciate meeting for possible Commission interest mid to late September ..
Stephanie Wilson
Lady Wilson
Unsuitable or offensive? Report this comment