In April the Conservatives wrote into their manifesto a pledge to cap the costs of long-term care. Just three months later, the party announced the £72,000 cost cap would not be coming in April 2016 as planned, but April 2020. Former care minister Norman Lamb told Money Marketing to see the move as anything other than the reforms being abandoned as “naivety in the extreme”.
In this Behind the Headlines episode, Money Marketing editor Natalie Holt talks to think tank Strategic Society Centre director James Lloyd about what advisers can do now to help clients prepare for the cost of later life care.
Lloyd, who has worked at the Prime Minister’s Strategy Unit and written influential papers on long-term care, says before the Government’s recent announcement people were already beginning to question whether the cap was all it was cracked up to be.
He also discusses the key products that may now come to the fore to plug the care cost gap, such as immediate needs annuities and equity release.