Elderly want compulsory LTC

Older people would prefer compulsory long-term care insurance a survey by Age Concern has found.

In research with people aged 55-75 conducted by Opinion Leader for Age Concern‚ the majority said they would prefer everyone to make a contribution whether or not they end up needing care themselves. The alternative - paying nothing if you don’t need care but facing potentially unlimited costs if you do – was overwhelmingly rejected.

Age Concern said it supported this “something for something” approach with everyone paying in advance for care and support but then receiving entitlement to better care in return.

The research revealed strong opposition to paying for care through large lump-sum charges on assets. The least favoured option to pay for care considered by the study was the suggestion that people are strongly encouraged to pay £15‚000 to a national care fund at 65 and the fund would then pay to meet some or all of their needs. Despite the risk that they would end up paying all their care and support costs‚ two-thirds of participants said they would opt out if such a system were introduced on a voluntary basis.

Participants overwhelmingly favoured a ring-fenced addition to National Insurance payments in order to share the risk of having to pay for care. Age Concern supports the case for increases in income tax or national insurance as one way to pay for care. Additional ways of raising money that include retired people will be needed‚ Age Concern believes‚ so that younger generations do not bear the entire cost.

Age Concern director general Gordon Lishman said: “Older people do not want to gamble their independence‚ dignity and life savings in the care lottery. They want to share the risk to limit the costs they might face and to improve the quality of care for all. The Government’s promised green paper to reform the system must end the great care gamble currently facing older people and their families.”

Over a third of people reaching 65 years old will need some level of care either at home or in a care home. The costs can be huge with care home fees averaging more than £500 per week in England. Even care at home can often cost in excess of £200 per week. Older people pay the full cost of their care so long as they have assets over £22‚250‚ with their home being included in the calculation if they are leaving the house empty to move into a care home.