IFAs must be wary when advising clients on their long-term care insurance
needs because of the differences in funding plans in the UK, providers have
The warning comes after the Welsh Assembly said it plans to join Scotland
and Northern Ireland in splitting from Westminster over funding for care.
The Welsh plans, which will not come into effect until April 2002, include
having one band of funding for LTC, a flat rate amount of £90 a week
of assistance for people deemed to require nursing care.
The move means each of the four home nations could have varying ways of
funding the costs associated with nursing care.
In England, funding of nursing care is set to start in October, with three
benefit bands ranging from £35 to £110 a week.
Last week in a speech at Glasgow University, Scottish First Minister Henry
McLeish reiterated his intention to fund all personal as well as nursing
care costs, saying he was determined to spare older people and their
families the catastrophic cost of longterm illness.
Northern Ireland has indicated that it is likely to follow Scotland's lead
by paying for personal and nursing care.
Leading IFAs say the moves make little difference as every local council
in England seems to have a different attitudes towards what constitutes
Norwich Union LTC strategy manager Sandy Johnstone says: “People are going
to have to make sure the advice they receive from an IFA takes into
consideration where they live in the UK.”
IFA Nursing Home Fees Agency partner Philip Spiers says: “It is still
going to be a bit of a postcode lottery depending on where someone lives,
even within England.”