The Economic Affairs Committee publishes its report Social care funding: time to end a national scandal today. The report recommends that the Government immediately spends £8 billion to restore social care to acceptable standards and then introduces free personal care over a period of five years.
Responding to the report Jim Boyd, CEO of the Equity Release Council, said:
“Meeting the costs of adult social care is already one of the most significant domestic issues facing this country and it is set to increase, as the UK’s population ages. We already have a funding gap. Public funding for social care is shrinking, while retirement savings are failing to keep up with increased longevity, with the average retiree expecting to outlive their retirement savings by 8.5 years.*
“Funding care through direct taxation offers much needed clarity but inevitably places the funding burden on younger generations of working age, who are arguably among the poorest generations. To find a sustainable funding solution which is fair across all generations there will be a need for a dialogue between all generations taking into account all assets. Property wealth can provide one solution. As 35% of homeowners aged 45+ now view money invested in property as part of their plans to pay for care,** perceptions towards the role of property wealth in meeting later life needs are changing.
“The Equity Release Council has called for a cross-party later-life commission which can assess the competing needs of all generations and how assets can be used most sustainably to fund care in later life. This will also ensure the financial issues facing our ageing population are recognised and given full consideration.”
**Equity Release Council, “Beyond bricks and mortar: the changing role of property in later life financial plans”– supported by Key
Click here to read the report in full.