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Gordon Brown: Insurance could free the people from fears on old age

Margarita

Registered User
Feb 17, 2006
10,824
london
What do you all think of this ?


Can read the rest in this link http://www.timesonline.co.uk/tol/news/politics/article3919700.ece




Gordon Brown proposed a new insurance-based system yesterday to fund care for the elderly, the cost of which is forecast to reach £24 billion in the next 20 years. The Prime Minister said he wanted to free people from the fear that they would be forced to sell their homes to pay for care, and called the current means-testing system unfair for those who had saved. He revealed few details on how the new system might work, with his ministers saying that nothing had been ruled out except free personal care for all. That would be too expensive. They also stopped short of promising that the family home would be taken out of the equation altogether.

The current system, where anyone with a home or savings worth £22,250 or more gets no help with care home fees, is to be scrapped and replaced with one where everyone gets government help. That is likely to be a basic contribution from the state towards the cost of care. The new system would also encourage and reward those who have saved for top-up payments, such as matched funding up to a predetermined limit.

Equity release schemes, which allow people to use the value of their home to pay for care without selling it, would be explored. A deferred payments scheme, under which care home bills are settled out of the estate after death, would also be expanded. But the very poorest with no savings or assets would continue to have their needs met.
Mr Brown said that his aim was to make the system fairer for people who worked hard and saved for their retirement. “Of course, helping relatives is a challenge that most families rise to – however difficult it becomes,” he said in a speech to mark the start of a six-month public consultation on care
 
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MX5

Registered User
Jun 4, 2008
3
CAMBRIDGE
At last .....

I think this is an excellent idea - certainly insurance is a good route to go. It needs to be compulsory a bit like NIC contributions so that everyone has to insure themselves for old age. With people living longer the % of people suffering from dementia will increase.

It's sad to see those close to you suffer and stand by and watch them go into decline and, when unable to care for themselves, have to go into residential care, then any assets over the currently "low" threshold eroded by the existing system.

Insurance would ensure adequate income to provide improved conditions in residential care and quality staffing, which is currently lacking.
 

Skye

Registered User
Aug 29, 2006
17,000
SW Scotland
He revealed few details on how the new system might work, with his ministers saying that nothing had been ruled out except free personal care for all. That would be too expensive. They also stopped short of promising that the family home would be taken out of the equation altogether.
Hmmmm! Sounds very woolly to me! I'll reserve judgement until he comes up with a few details.


“Of course, helping relatives is a challenge that most families rise to – however difficult it becomes,”
Hmmmm again! Sounds as if it will continue to be left to families.

OK, I'm an old cynic!:D
 

christine_batch

Registered User
Jul 31, 2007
3,388
Buckinghamshire
I wonder which people were on the Public Constitution of Care ?
If you are lost - ask a Policeman
If you are sick - ask a Doctor
If anyone needs information about Caring - ASK A CARER!
Christine
 

jenniferpa

Registered User
Jun 27, 2006
39,448
I'm a bit ambivalent about this, in part because here in the USA that's the preferred option. True, medicare kicks in when you've exhausted every asset, but you're talking shared room etc.

I have myself a long-term care policy. It only covers me for around 6 years of care, but the money can be spread over many more years than that by paying for care in my own home. Some policies don't do that: you have to enter residential care in order to get payment.