LV= comments on the Social Care White Paper on long term care
Commenting on the Social Care White Paper on long term care, Vanessa Owen, LV= Head of Equity Release said:
“The fact the Government pledges support to the principle recommendations in Andrew Dilnot’s review, but fails to take action and introduce a cap on care costs is a blow for many. Instead, it is reported we will see local councils offer loans which will be paid back when the person in care dies or their house is sold. It is a real concern for people who face the burden of funding long term care, as they continue to be faced with an open ended bill which makes it difficult to plan effectively to meet these costs. Receiving a loan and being able to defer the sale of a property does not change this.
“The Government needs to ensure people can properly plan for care costs, that their total wealth isn’t quickly eroded, and families aren’t left with big care bills to pay after a relative passes away.”
LV=’s recent Future of Long Term Care report showed the number of people using long term care services will grow from 840,184 today to 1.1 million by 2025, an increase of 37%. The report also predicted the average cost of long term care per person will rise by £7,000, to £33,000 per year in real terms by 2025, an increase of 27% (1). This puts the total cost of long term care for the elderly in the UK at £37.9 billion a year by 2025, compared to £21.8 billion now (2).
If people are considering using their property as part of their or a loved ones long term care funding then it is important to speak to a specialist financial adviser.
You can see the full LV= Future of Long Term Care report here