Debate takes central ground in parliamentary electioneering
The debate over long term care (LTC) insurance has assumed a central role in the electioneering campaign of the two main opposition parties. Both the Conservative Party and the Liberal Democrats addressed the issue of how care for the elderly is to be financed as the campaigns to win the 'grey vote' at the next general election get underway.
Speaking at the Older People's Summit in Westminster, Conservative leader, Michael Howard, proposed a scheme that would see individuals encouraged to take out a three-year insurance plan on the grounds that the State would cover LTC costs thereafter.
"For many people the last few years of their lives can be spent in residential care," said Howard. "Without proper planning, this can end up meaning someone's entire life savings and property are used to pay for care. A total of 40,000 people suffer this indignity every year."
Although no finer details were given, Howard said full details of the scheme would be revealed at a later date. However, he stressed the central part of his proposal was clear. "People who take out an insurance plan that meets the cost of three years' long term care would be guaranteed free long term care by the Government beyond those three years, regardless of their assets," Howard said.
Liberal Democrats leader, Charles Kennedy, also announced his plan to finance the elderly in his party's pre-manifesto statement. Kennedy pledged free LTC for those who needed it by introducing a "very high individual income tax". Anyone who earns more than £100,000 a year would be taxed 50% of their earnings, a move that would affect only the top 1% of British workers.
Reacting to the Tories proposal, Chris Ellicott, technical manager at Age Concern Financial Partnerships, said: "A long term care partnership is in place in the US, though in just four of the 50 states, and even then take-up is not on the scale providers would like to see. It's good to see different ideas being put forward for consideration in the UK."
Mike Douglas, general manager at PAFS, also welcomed Howard's comments: "At present people struggle to find competitively priced insurance cover for long term care because they don't know if they are going to live ten years or two years. This move would allow us to be far more aggressive in our pricing, because there would be a maximum limit of cover required and affordable insurance for the consumer."
