Steven Cameron, Pensions Director at Aegon comments: “We welcome the Labour Government launching this latest review into social care and how to fund it. In July, citing lack of funding, the Chancellor cancelled the previous Government’s deal, due to come into force in October 2025, which would have capped any individual’s contribution to eligible care at £86,000.
“As our population on average lives longer, providing and funding social care for our elderly is one of our greatest societal challenges. It’s a challenge which affects millions of individuals across the country – both those needing care and their families who support them. We need a solution which is widely accepted as fair across society and generations.
“Many people would like to plan ahead to make sure they have the funds to pay for social care should they need it in later life. But currently, there is no cap on how much individuals are expected to pay, meaning some people face catastrophic care costs which can wipe out lifetime savings and force the selling of the family home.
“To allow advance planning, we need a deal which is stable over many decades meaning cross-party support is essential.
“Any deal is likely to involve the sharing of costs between the Government and individuals requiring social care, based on their ability to pay, but with an overall cap on personal contributions. For the Commission to be effective, it will need to be able to consider a wide range of options including increases in personal taxes, be that income tax or National Insurance, something which the Chancellor has ruled out for this parliamentary term. But with the second phase of the Commission’s findings not due until 2028, this raises the prospect of tax rises being discussed in the run up to the next Election.
“We very much hope Baroness Casey’s Independent Commission will draw fully on the extensive thought which has already gone into this challenge, from Andrew Dilnot’s proposals through to the previous Government’s confirmed but cancelled plans. After decades of delay, the millions of individuals affected are crying out for clarity on care costs to enable them to better plan for later life.”
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