No sooner had I expressed my concerns in my last monthly column that long-term care seemed to have fallen off the Government’s agenda towards the back end of 2012, than it was catapulted back into the headlines by way of former care minister Paul Burstow’s suggestions. The Lib Dem MP – and Delivering Dilnot editor – Burstow called on the Government to diffuse the long-term care time bomb by introducing means testing for winter fuel payments. His reasoning was that the projected £1.5bn to £1.7bn a year this would potentially save could fund a cap on care costs and implement reform of elderly care.
The Equity Release Council was quick to back the efforts to focus attention on the question of who pays for elderly care and how people who have worked hard to afford their homes should not be forced to give them up to help fund healthcare in later life. Director General, Andrea Rozario, was also keen to stress how more must be done to provide access to financial advice to prevent people eroding their assets and quality of life in retirement and how releasing equity from properties can offer many people a way to manage care costs without having to sacrifice their homes.
While I strongly agree with the latter point and broadly support any original thinking around addressing long-term care costs, we must look at the wider issues and the overall amount of money that is going to be required to satisfy the UK’s needs in this area. There is certainly the need for joined-up thinking when we look at how we as a nation are going to meet these costs and also we need to marry up State support with the private options currently available.
Overall, it is vital that we keep long-term care in the spotlight and avoid it being “kicked into the long grass” as current care services Minister Norman Lamb has accused the powers that be of treating the issue previously. The fact long-term care was completely glossed over in the recent Governmental mid-term review doesn’t bode well despite David Cameron and Nick Clegg seeming to commit to a cap on care fees. Until we see any hard evidence of this, it will continue to feel like mere lip service is being paid to the issue rather than any real willingness to tackle the underlying problems.
Of course within this debate it is important that equity release as a potential solution to such problems is not overlooked and a wider, generalist education programme on where equity release might fit could be a strong starting point. The importance of financial advisers in general, and specialist equity release advice in particular, cannot be underestimated. And to mind we need a process which encourages those funding their own care to be put in touch with qualified advisers who could help such individuals make informed choices about options such as equity release and give them professional guidance and assistance when they need it most. If the Government is going to continue to address the problem itself, the least it can do is lend its support to those who are trying to make a difference.
Chris Prior is manager sales and distribution at Bridgewater Equity Release
