The fundamental problem with the over 55s paying for their own long term care in their later years is the unfairness attached to the principle.
Undoubtedly, it’s right that those can afford to pay for their care should contribute all or part of the cost.
But why should one individual scrimp and save over their working life to fund a comfortable retirement have to find thousands of pounds in fees while someone else gets the same benefits for free?
It’s not fair, it’s not right and clever lawyers will just find a work round that bypasses the process and ends in costing the taxpayer more money.
Expect to see a flood of madcap schemes floating good, bad and the distinctly ugly solutions to the problem over the next few weeks as politicians, vested interest groups and financial firms jockey position to influence the wording of the forthcoming white paper on funding the cost of long term care.
Ministers are making their play already. The Treasury has leaked a cap on long term care costs of between £50,000 and £60,000 for each individual, with the money coming from savings, selling their home or a dedicated insurance scheme.
Paul Burstow, minister of state at the health department, has suggested to a Commons committee that the over 55s will have to allocate part of their pensions or release equity in their homes to fund their care.
The idea is to split pension income in to day-to-day living income and another pot for care costs, effectively reducing the amount the retired have to live on.
Housing minister Grant Shapps is doling out praises to a scheme piloted by the council in Redbridge, East London, to help the elderly downsize their homes.
The council finds sheltered housing or care space in return for taking on the responsibility for maintaining and letting their homes to families in need.
The problem is that while the downsizing pensioner saves living costs, the rental on a four-bedroomed family house is £300 less than the average commercial rent of £1,700 on a comparable property.
“Older people who should be enjoying their homes have watched helplessly as their properties have become prisons, and many have been forced to sell their homes and move into residential care,” said Shapps.
“Urgent change is needed to ensure the nation’s housing needs are met. Moving to more suitable accommodation can make a life-changing difference for some older people.”
Communities Minister Andrew Stunell has also spoken out in favour of the scheme.
“Giving older people more choice where they live is the right thing to do, but it also makes economic sense. Up to £26,000 can be saved each year for each person by offering an alternative to residential care,” he said.
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