The Role of Private Finance in Paying for Long Term Care

Abstract

This is the published version of the paper.This version of the publication may differ from the final published version. Permanent repository link:

The effect of lengthening Life Expectancy on future pension and Long-Term Care expenditure in England, 2007 to 2032

“…The partnership scheme examined here as an alternative to the current system was designed to address some of the perceived failures of the current system, notably that it produces significant unmet need (Wanless 2006; Commission for Social Care Inspection 2008) and creates disincentives to save and plan for LTC needs (Mayhew et al, 2010). The particular version of the partnership scheme modelled here would require the state to find an additional 0.1 per cent GDP by 2032 to finance it, irrespective of which assumption about improvements in LE is made.…”

The role of care home fees in the public costs and distributional effects of potential reforms to care home funding for older people in England

“…The system may therefore distort savings decisions (in general and as between saving in different forms). This has led to concerns that the current system reduces incentives to save (Her Majesty's Government, 2009;Mayhew et al, 2010). The inclusion of housing wealth in the means test for residential care but not care at home (Department of Health, 2003) gives LAs an incentive to fund residential rather than home care for people with housing wealth when the gross cost of care in their own homes is close to that of residential care.…”

“…Further details of the means test are given in the appendix. Few care home residents are liable for the full costs on the basis of their incomes alone; self-funders are generally people with significant assets, usually in the form of housing wealth (Mayhew et al, 2010).…”

Means Testing Adult Social Care in England

“…30 Personal Care Savings Bonds is a lottery-style savings product which works like National Savings Premium Bonds that pay out prizes but also accrue a low rate of interest. 31 See Mayhew and Smith (2014); Mayhew et al (2010). unlimited budget to pay for social care.…”