The Government is likely to put forward plans for a one-off voluntary fee, either paid on retirement or deducted from inheritance tax after death, as one of several proposals in a long-term care green paper due to be delivered later this month.
Tamar IFA director Colin Last says: “It seems unfair for people who are already paying IHT to then have another £12,000 taken out, especially when they are unlikely to benefit from it. A pre-funded scheme is probably the right way forward.”
Symponia joint managing director Janet Davies says £12,000 is an odd sum to pay as it does not represent even six months’ worth of care while the average time in care is between 18 months and two years.
She says: “It is not something I can see working. Who will pay the care homes in the meantime? They cannot wait until the resident dies to get the money.”
Lansons public affairs director Ralph Jackson comments: “This is only one proposal in a range of options.”