Steve Groves, Chief Executive of specialist annuity provider Partnership welcomes proposals made by Dilnot today.
“Andrew Dilnot’s proposals are well judged and will bring much needed light to the care funding debate. Most people have failed to plan adequately to fund their social care needs as a result of a lack of clarity about what individuals will have to pay for and what the state will pay for.
The opportunity to introduce a sustainable solution to social care funding is very limited as the oldest in our populations are set to grow fastest. Currently there are around 400,000 elderly people in residential care. This number is predicted to increase to 750,000 in 2031 and more than triple in 2081 to 1.5m.
“Given the considerable additional costs that Dilnot’s proposals will place on Government, the real risk facing them, is that the Government will seek to hide them in the “long grass”. Too many Governments have sought to avoid making tough decisions on social care funding – we cannot afford to do it again” added Groves.
However Groves cautioned “People entering into residential care and their families must get appropriately qualified financial advice now, as Dilnot’s proposals are unlikely to be introduced until the end of this Parliament at the earliest. Our average policyholder lives for 4 years. This will cost them on average between £121,000 and £178,000. 10% will live for 8 years in care. This will cost them on average between £242,000 and £356,000.”
“These people must get qualified financial advice immediately if they are to make adequate provision for their costs in care or they risk running out before any changes are even implemented, after which time they remain on the hook for the accommodation element of their care costs without any cap.”
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