Yesterday, the Department of Health released its green paper into the funding of long-term elderly care, proposing three options to be consulted on.
The three options are a partnership service, a voluntary insurance scheme, or a possible compulsory ‘comprehensive model.
But care fees planning specialist NHFA says the devil is in the detail, and says the proposed models need careful consideration.
NHFA chief executive officer Nick Tyler says: “It is imperative that these proposals are nationally debated and that the public is fully engaged in the process. Nationally, we need to find a means of funding care that meets both public expectation and the affordability gap.
“It must be seen to be fairer, but not to leave those on low incomes without the safety net of public support, or those with assets and capital carrying a disproportionately higher share of the burden.”
Aviva UK Life says it could be extremely difficult to encourage people to pre-fund for long term care and is now warning the Government against over reliance on this form of funding.
An Aviva spokesman says: “By its nature, long term care is even less of a priority for many as it is an issue people may not have to consider for several decades.
“It is therefore important that we look to find a range of flexible solutions to support the future long term care needs of our customers. This may mean changes to the ways in which people’s assets are used to fund long term care.”