Old may have to take £20k ‘care insurance’

Elderly people in England could be forced to pay up to £20,000 for basic care and support in old age.

It is one of three options being considered by the Government to fund a new national Care Service aimed at ending the current “cruel lottery” where some old people have to sell their homes to pay for care.

Health Secretary Andy Burnham said he wanted to create a system which was “fair, simple and affordable” to all. He has already ruled out full state funding from taxes and the “pay yourself” system, which is unfair to those who need years of care for conditions like Alzheimer’s.

Mr Burnham said: “We have an opportunity to grasp the nettle. If we fail to do that we face the prospect of a diminishing quality of care.”

The social care system covers everything from home help with washing and dressing through to full-time residential care.

At the moment, anyone with a home or savings of £23,500 or more does not qualify for state help.

Three options will be consulted on for four months. A “partnership” approach would see state pay around a quarter to a third of the cost of basic social care and support, leaving individuals to find the remainder.

A voluntary insurance scheme would give some level of basic free care with Government helping to set up contributory insurance systems to cover the extra costs.

The final option would be compulsory insurance for all costing up to £20,000. Under all three plans, the poorest will have their full care package paid for by the state.

Mr Burnham said all three options could cost the state around the same as the current £14.7 billion annual budget.