Giving the inaugural Royal London annual lecture, Sir Andrew Dilnot will today (Thursday 12th October) call for action to deal with a ‘broken’ care market.
Despite growing need from an ageing population, the number of people receiving residential care has barely increased since the turn of the century, and consumers often have very little choice of suitable care homes with vacancies in their local authority.
Sir Andrew, author of the report which led to the 2014 Care Act, will argue that the risk of facing ‘catastrophic’ care costs remains the ‘last big unpooled risk’ that citizens face, and that a mixture of social insurance and new forms of private sector financial services would help to make sure that people are far better protected against this risk. A cap on care costs would help to make private care policies viable for providers, and a growth in the number of people with money to spend on care when they need it would help to stimulate innovation in the care market. Sir Andrew will also say that the growing costs of care cannot be met wholly or mainly by the working age population, and that the retired population should be making a bigger contribution over time.
Sir Andrew Dilnot said:
"Many of us will not need to spend large amounts on care in later life, but for those who do, the costs can be huge. We need to find a way to pool this risk rather than let it be a later life care cost lottery. A cap on care costs removes the catastrophic risk facing us all, and could help to stimulate more provision of private sector financial services. Coupled with a reform to means-tested state support, this could help tackle the ‘broken’ care market where the supply of residential and domiciliary care all too often does not meet the needs of older people."
Steve Webb, Director of Policy at Royal London said:
"There is a real risk that the Green Paper on social care will simply pose questions and will postpone politically difficult choices. The ‘Dilnot’ cap on lifetime care cost is an important part of the answer. It is only fair to make sure that those who are unfortunate enough to face huge long-term care costs in later life do not face an unlimited bill, and a cap would make it more viable for providers to come forward with insurance products. We also need to think creatively about whether care insurance could be integrated into other financial products such as pension drawdown accounts which would help to broaden the group of people who are pooling the risk of facing huge care costs."
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Notes to editors:
- Sir Andrew Dilnot is currently Warden of Nuffield College Oxford and led the ‘Commission on Funding Care and Support’ which reported in 2011 (http://dilnotcommission.dh.gov.uk/ ) and led to the plans for a cap on lifetime social care costs which were included in the 2014 Care Act. Biographical details for Sir Andrew can be found at: https://www.nuffield.ox.ac.uk/people/profiles/andrew-dilnot/
- The first Royal London annual lecture will be held at 1315 on Thursday 12th October at the Association of British Insurers, One America Square, 17 Crosswall, London EC3N 2LB. If you would like to attend the event, please contact Emily.email@example.com for more details. Following Sir Andrew’s lecture there will be feedback from industry experts and a time for questions. The independent chair of the event will be Alison Holt, BBC Social Affairs Correspondent.
About Royal London:
Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £117 billion, 8.8 million policies in force and 3,745 employees. Figures quoted are as at 30 June 2018.