The Government must review capital gains tax, winter fuel payments and pension credits in order to introduce and pay for a long term care lifetime cap of between £50,000 and £60,000 pounds, a report has suggested.
The report, "Delivering Dilnot: Paying for elderly care", edited by former carer services minister Paul Burstow MP (Lib), is intended to endorse the Dilnot Commission's recommendations as "our best hope of reforming care financing in at least a decade" and to keep the issue at the top of the agenda.
Speaking at the launch, Lord Sutherland, chair of the Royal Commission on the Long term Care of older people, said: "We have always been told this will be dealt with; that there will be jam tomorrow. The Government has no policy on this matter, that's the deep flaw."
Burstow added: "We should be under no illusion that Her Majesty's treasury has, institutionally, blocked progress on this issue for too long.
"I am also clear that, for too long, the Treasury has not sought to actively engage in seeking an alternative to any of the options that have been put forward.
"What today's publication does is restate the case for reform. The combination of a cap and a means tested benefit will deliver a tangible benefit."
The report concludes:
- The current capital gains tax relief at death is not justified and should end to raise £600m a year towards Dilnot's implementation.
- A care cap of between £50,000 and £60,000 in 2015 prices is the most appropriate level, and will work with an increased upper capital limit of £100,000 to ensure a fair and sustainable system.
- Winter Fuel Payment universal entitlement should be stopped and receipt of it should instead be linked to those receiving Pension Credit - up to £1.5bn could be saved and spent on care funding reform.
- Merging Winter Fuel Payment and Pension Credit into a lump sum paid at wintertime would incentivise those entitled to - but not receiving - Pension Credit to begin claiming.
