By Kirstie Redford Insurance providers remain unclear about the future of Government funding ...
By Kirstie Redford
Insurance providers remain unclear about the future of Government funding for long term care (LTC) for the elderly following the Scottish Executive's recent plans to provide free personal care.
If the proposals are accepted, the devolved Government will have in effect created a two-tier health service, with pensioners in England and Wales receiving different benefits to their Scottish neighbours.
Speaking at the Carers National Association conference before the announcement, health minister John Hutton said that the Government's decision not to fund personal care was a bid to improve existing services and promote independence for the elderly. He said: "We could have chosen to spend £1.4bn on making personal care free, but I do not believe that would have improved frontline services or benefited the least well off. It would have locked into place services already in place and does not meet the needs of elderly people.
"We need to provide a consistent approach to eligibility and services which promote independence. I believe it is right for elderly people to stay at home surrounded by their friends and family if that is what they want."
Whether or not the Government is persuaded to follow Scotland's lead, long term care insurance (LTCI) providers remain in an uncertain position until concrete decisions on State provision are made. Until then, the industry can only ponder the future of LTC sales and new product development.
Richard Thomas, managing director of Red Arc Assured, said that if the Government does not provide free personal care in England and the Scottish Executive goes ahead with its proposals, premiums for LTCI may seem less attractive when compared with premiums for the reduced cover needed in Scotland.
"The big difference when it comes to products will be that customers in Scotland may call for a lower amount of cover than those in England, meaning that LTCI could prove a better buy north of the border," said Thomas.
With 65% of LTC for the elderly currently provided by informal carers, the Government has warned that a move towards free personal care at this time may lead to funds for carers being cut. At the conference, Hutton said: "The Royal Commission and the Government have recognised the importance of carers. Around one in six households contains a carer. Councils should have discretion to meet those carers' needs."
Philip Spiers, partner at the Nursing Home Fees Agency, believes that because the majority of care is provided by informal carers, the move towards funding personal care is an unlikely eventuality for England and even if comes to fruition, people will still demand insurance to top up care levels.
"It is unlikely, even if Scotland does go ahead with its proposals, that England will follow suit. So much home care is delivered informally. If personal care is offered, everyone will want it, which will inevitably cost the Government. Whatever free care is provided it will also be capped. If people want to remain in control, they will need to rely on LTCI it will still have a place," said Spiers.
However, charities Help the Aged and Age Concern have applauded the Scottish Executive and pledged to keep campaigning for free personal care in England.
Gordon Lishman, director general of Age Concern, said: "What we now need is for Westminster's politicians to realise they have little choice but to follow the example of the Scottish Parliament and make clear that older people are not at the bottom of their political agenda."
