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Tories announce home protection plan for the elderly

The Conservative party has revealed plans to introduce a home protection plan for the elderly, in partnership with insurers, if it wins the next general election.

Speaking at the Tory party conference in Manchester, Shadow Health Secretary Andrew Lansley said the Conservatives would introduce a voluntary scheme with a one-off £8,000 joining fee in return for a guarantee that all fees for permanent residential care would be waived for the rest of their life.

People will be given the option of signing up to the home protection scheme when they reach the state retirement age, currently 65.

Lansley said the proposed scheme would “lift a major weight of worry from the shoulders of all older people and their families”. He added: “In twelve years, Labour have failed to offer older people any hope of a way out of the forced home sales crisis. A vote for the Conservatives is now a vote for a real, affordable alternative to losing your home if you need to enter residential care.”

Lansley said the home protection plan would not require any public money if insurers agreed to run it.

An Association of British Insurers spokesman says: “The ABI has long advocated a partnership between the public and private sectors to deal with the crucial, and costly, issue of providing long-term care for the elderly. This proposal has many merits and we support its aims in principle.

“The details will need to be examined carefully, and we look forward to working closely together on the scheme’s development.”

Aviva global chief executive Andrew Moss says: “Aviva is encouraged by the Conservative Party’s proposals on the very important issue of reforming long term care for the elderly.

“We believe this can best be provided by insurers and the government working in partnership and we look forward to working through the details of the proposal.”


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There are 7 comments at the moment, we would love to hear your opinion too.

  1. Does not compute
    A laudable aim, however, given the failure of many long term care policies to meet policyholders’ expectations you might be forgiven for asking what value insurers could add to such a critical public service and how such a modest sum could provide sufficient benefit without the taxpayer eventually having to come to the rescue one unpredictable day in the future.

  2. home protection plan for the elderly
    what a wonderful idea , its obvious david cameron has really thought this through. i cant wait to see how this brave new plan willl work, maybe a stake holder version!? ha

  3. Tory home protection
    Interesting see Aviva expressing an interest when they pulled out of the pre funding market because they could not make it pay!And who has Dave consulted on the feasability of this plan,or dare I say this is a cynical ploy to get media coverage?Sorrry Dave only 2/10 for this must try harder,even my maths would struggle to turn £8000 into £50-100,000 required to fund 2-4 years fees in your average care home, using low risk investments in the timescales required.Sorrry Dave only 2/10 for this must try harder.

  4. Home Protection for the Elderly
    I think Andrerw Moss will have a long wait if he wants to see any detail. This is an area which critically requires cross party consensus. If we let the politicians mess about with care as they have messed about with pensions, retirement planning will lack the long term stability it needs.

  5. Home protection for the elderly
    Re anonymous: The whole point is that only 1 person in 5 actually requires the beenfit. Hence the insurance nature – 4 in 5 pay money they can afford and receive no benefit – the 5th pays money they can afford and their costs which they could not afford without selling the house(estimated to be £50,000) are covered by the other 4 + earnings in the period between payment of the premium and the claim.

    £8K would not cover it..and is it likey to have “may go up as well as down” will the service which is costly…be actully be delivered if at all to any standard of human dignity?..or is this just money upfront have and play with by the private sector? i remain sekptical of the real value of this return…of £8k!

  7. Hoem protection
    To John Wood.
    Your assumptionn that those who never need the benefit will subsidise those who will has one fatal flaw.How many people will actually pay this at 65 on the basis they may never claim.I re-iterate the point,Aviva could not make it pay because those who could afford to did not see themselves ever needing it and if they did they would pay for it another way when required.The whole concept remains flawed and until they (or you) provide detail on how it will work it remains political opportunism and will never see the light of day( Labour have no answer either).

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