MPs calls for over-40s to pay a ‘social care premium’ to cover the costs of being looked after in their old age
- MPs called for the government to set up a dedicated pot of money for the elderly
- The scheme would work similar to pension plans run by almost all UK employers
- An average UK adult making £27,000 could be expected to give £675 a year
The over-40s should be made to pay a ‘social care premium’ to cover the costs of being looked after in old age, MPs have suggested.
They are calling on the Government to set up a dedicated pot of money to guarantee basic social care to all those in need.
This would be part-funded by the over-40s and part-funded by their employers, similar to a pension scheme.
The MPs did not specify how much the premium should be – although they estimated that it would need to raise about £2.5billion a year.
For an average adult in the UK earning £27,000 the contributions would be equivalent to £675 a year
They pointed to the system used in Germany where all over-40s put 2.5 per cent of their wages towards a ‘Long Term Care Insurance’ pot.
For an average adult in the UK earning £27,000 this would be equivalent to £675 a year. Someone on a £50,000 a year salary would pay up to £1,250.
The recommendations have been put forward by the Housing, Communities and Local Government Committee and the Health and Social Care Committee which says our existing system is under ‘considerable strain.’
Many adults are being denied the help they need with basic daily tasks and either have to pay out of their own pockets or struggle alone.
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The MPs suggested introducing a minimum income threshold to ensure those on very low earnings would not pay into the pot. They said the aim of the system would be to guarantee ‘free’ personal care for all those in need, such as help with washing, dressing and eating.
Care home fees would not be covered however and these would continue to be means-tested or funded by individuals themselves. The Government have promised to reform the system with the publication of a social care green paper but this has been delayed until the autumn.
Labour’s Clive Betts, who is chairman of the housing committee, said: ‘The social care system is in a critical condition and there is an urgent need for more funding both now and in the future to ensure people are properly looked after.
‘We heard during the inquiry that people would be willing to pay more if there was an absolute guarantee that the extra money would go on social care.
MPs suggested introducing a minimum income threshold to ensure those on very low earnings would not pay into the pot
‘Given the huge funding gulf, the Government should now take the opportunity to build both a political and public consensus around the need for a new Social Care Premium to secure a fair and sustainable system in the long-term.’
Conservative Sarah Wollaston, who is chairman of the health committee, said: ‘We can no longer delay finding a fair and sustainable settlement for social care. Too many people are being left without the care and support they need and it is time for decisions to be made about how the costs are shared.’
Caroline Abrahams, charity director at Age UK said: ‘This important new report agrees with the growing consensus that our social care system is unable to meet the needs of older people and disabled adults today, let alone the much greater numbers expected to require care in a few years’ time.
‘The big question is what as a society we are going to do about this and we share the MPs’ conclusion that we need a bold new vision for what good care looks like, plus enough funding to deliver it.’
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