Partnership rebuts think tank LTC proposal

Long term care (LTC) specialist Partnership has criticised plans put forward by James Lloyd of the strategic Society Centre think tank for compulsory LTC insurance.

The provider pointed out that, among other issues, the sums involved in the plan were inadequate.

Chris Horlick, managing director of long term care at partnership, said: "On the positive side this is new money into the system. The problem is that the scheme mentions "substantial" levels of need would trigger it. Well, "substantial" is the second highest category of need out of mild, moderate, substantial and critical. The proposed £150 will not cover this. Most would still be topping up.

"Another problem is that this is a tax on all, whether they go into care or not. I can't see it being popular with the present government nor with the public."

Horlick also noted that this tax would be paid either over a lifetime of work or at retirement and most would not pay over their working life. "Most people do not have large pension pots and to take seven thousand out of it is a substantial sum of money. Then, having paid, they will get to the point of need and find they are still not covered," he said.

"James Lloyd pointed out that there is no evidence of a voluntary insurance system working anywhere in the world. This is true but what we have never had here is clarity. The public has no idea what the system is for long term care or what it does or how it operates. Most still believe the NHS and state will look after them. They are then shocked to find that this is the case."

He added: "We cannot say the market has failed until we try and make a market. We need clarity from the government and I think that is what the Dilnot Commission will recommend in July. Thereafter there will be an opportunity to create a voluntary market and we need to free up other assets.

"Pension pots need to be available for long term care as well."