The Government's options for social care provision

Pensioners are getting a poor deal with 2.5 million living between the poverty line says the Telegraph. Some elderly people are forced to sell their homes to enable them to pay for the care that they need. This may seem unfair as those without means pay nothing - a cruel lottery indeed. All elderly people have to fund the cost of their care themselves unless they are on low incomes or disability benefits and this can use up all their savings including the equity in their home to a threshold of £23,000.

However, the Government in a bid to rectify this situation is considering several options to fund the care of older people. Health secretary Andy Burnham said in a statement in the House of Commons today that he wanted to launch a new system that was "fair, simple and affordable" to everyone.

It would be unfair to fund care of older people from general taxation as this would put the onus squarely on all people of working age. Equally the "pay for yourself" system would not be fair to sufferers of Alzheimer's and other long term conditions who need many years of care.

Mr Burnham therefore opened the debate as to the best way forward to the public. He said there are three possible solutions: a partnership between the state and the individual with the state contributing about a quarter to a third of the cost of basic care: a voluntary insurance scheme where the state would make a similar contribution but would facilitate an insurance scheme whereby individuals would take out a policy at around £20,000 to £25,000 to cover their contribution: and lastly a compulsory insurance scheme for everyone which would cost around £17,000 to £20,000 at present day levels and would make possible free care to all who need it.

It is said that the average 65 year old at the present time may need care costing £30,000, with £40,000 for women and £22,300 for men. A minority (20 per cent) need just £1000 or under for care following retirement but half need over £25,000 and a smaller minority with long term conditions more than £50,000.

Prime Minister Gordon Brown wrote in a foreword to the new document: "The fact that as a nation we are now living longer is clearly a cause for celebration, but it also means that the pressures on our care and support system are greater than ever before."

  What's this?