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Peers warn elderly will still be forced to sell homes under LTC reforms

Lord David Lipsey says the Government’s deferred payments system restrcitions will result in “almost no take-up” of reforms.

Labour peer Lord David Lipsey is warning thousands of people will still be forced to sell their homes to pay for long-term care under Government plans.

In the House of Lords this week, the Government faced rebellion over its proposed  new deferred payments system in the Care bill which will only be available to those with assets of less than £23,250.

The system would see people take out a loan from their local authority, repayable on death.

More than 200 peers voted for Lord Lipsey’s amendment to introduce a universal deferred payments scheme but it was still defeated.

Lord Warner, who sat on Andrew Dilnot’s commission on long-term care, warned the Government is giving the wrong impression that people can stay in their homes.

Speaking to Money Marketing, Lord Lipsey, who is president of the Society of Later Life Advisers, says: “People will still have to sell their homes as there will be practically no take-up of Dilnot if the Government sticks
to this.

“A major plank of Dilnot has been whisked away. My guess is the Government will have to U-turn because it is indefensible and without justification.”

Frenkel Topping managing director Richard Fraser says: “Very few people will have equity of less than £23,250 in their property so it makes the whole deferred payments scheme a nonsense.”

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