Howard unveils new plan for personal care

Tuesday, 14 September 2004 12:00 AM

The Conservative Leader has unveiled a new plan to cover the costs of personal care for the elderly.

Under the proposals, people would be required to take out an insurance plan to meet the costs of three years worth of personal care. Those who take out such a plan would then be guaranteed free personal long-term care by a Conservative government regardless of their assets.

Outlining the plan at a Conservative Party Older People's Summit in Westminster, Michael Howard said that the plan would avoid the scenario whereby elder people have to use savings and potentially sell their house to pay for care.

Under the current arrangements, those whose income falls below a certain threshold have their care paid for by the state, but the better off are required to fund their own private care.

Announcing the proposals, which will be published in full later in the year, Mr Howard said: "For many people, the last few years of their lives can be spent in residential care. Without proper planning, that can end up meaning that someone's entire life savings and property are used to pay for that care. 40,000 people suffer this indignity every year.

He promised that free means-tested care would still be available, adding: "So no-one would be worse off. And many would be better off. The current system is unfair. It encourages people to run down their assets. It penalises people who have saved.

"Our proposed three year partnership scheme would be fairer, more transparent and would provide a vital safety net."

In Scotland there is free personal care for the elderly regardless of income, a system which the Liberal Democrats today said they would widen to encompass England if they were elected.

Help the Aged though were unconvinced by Mr Howard's plans. Spokesman Mervyn Kohler said: "The Conservatives have rightly recognised that the potentially catastrophic costs of long term care are a great worry to many older people. However, their policy proposal has been mooted before.

"There have been historic difficulties with selling pre-funded care insurance in the UK, and nearly all the insurance companies which were in this market during the last decade or so have now withdrawn. The issue has become the more difficult as more and more people can be supported with care packages in their own homes - at a wide range of different costs and charges."

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