Tories announce end to forced home sales for care costs

HAMISH_MCTAVISH

A "home protection scheme" to prevent older people having to sell their properties to fund long-term care has been unveiled by the Conservatives.

In England, residential care costs must be met by the individual if they have assets of more than £23,000.

But Tory health spokesman Andrew Lansley said the party would offer a voluntary one-off fee of £8,000 at age 65 to waive residential fees for life.

Shadow chancellor George Osborne said it was an injustice that people were forced to sell their houses to fund the cost of going into a care home.

Mr Lansley added: "This scheme is a genuinely huge step forward for England's care system and will lift a major weight of worry from the shoulders of all older people and their families.

"In 12 years, Labour have failed to offer older people any hope of a way out of the forced home sales crisis.

"A vote for the Conservatives is now a vote for a real, affordable alternative to losing your home if you need to enter residential care."

http://news.bbc.co.uk/1/hi/uk_politics/8288111.stm

Good, sensible, pro homeowners policy.

No wonder the hpc crowd are going mental about it.;)

Generali

Oh well, it's just another liability that the UK taxpayer can't meet.

According to this:

http://www.fundingcaring.co.uk/cost-of-care-homes.html

A survey published by Saga recently estimated that average care home bills are around £540 a week. The average stay of a person in a care home is four years, so over the average stay costs would come in at around £112,000 per person.

According to this:

http://www.carehomesguide.com/ShowArticle.aspx?id=1

- Government statistics estimate that overall places in residential care homes and care homes with nursing and hospitals will have to increase from around 450,000 currently to approximately 1,130,000 in 2051, in order to cope with the demands of the growing ageing UK population.

That's going to be an awful lot of money that you're hoping your kids are going to be willing to find.

HAMISH_MCTAVISH

Generali wrote: »

That's going to be an awful lot of money that you're hoping your kids are going to be willing to find.

I don't have kids.....:beer:
And I also don't use the NHS, claim benefits, count on state pensions, or anything else.

So basically all my contributions are being used by other people.:rolleyes:

I'm quite happy to get a little back for a change....;)

Generali

HAMISH_MCTAVISH wrote: »

I don't have kids.....:beer:
And I also don't use the NHS, claim benefits, count on state pensions, or anything else.

So basically all my contributions are being used by other people.:rolleyes:

I'm quite happy to get a little back for a change....;)

Well that's very sensible as I think that anyone that's relying on the state for their income in retirement is going to find they end up with somewhat less than promised.

vaporate

I'm working towards getting a state pension but will not solely rely on it if I can help it.

Only way is to save and benefit from the interest really.

treliac

Ah, but the point of this is that, if you want to take advantage of this 'offer' you have to buy an insurance policy, at the age of 65, at a cost of £8,000. Given that only a small percentage of people actually end up needing residential care ... and how many people are going to have £8,000 spare (no doubt there will be an easy pay option :rolleyes:) ... exactly how many are going to think this a good buy?

Not me!
.

nollag2006

Weren't the Tories the ones that forced the elderly to sell their own homes to pay for care in the first place?

Another failed Tory policy.

Theresa May was right - they really are the Nasty party

dopester

treliac wrote: »

Given that only a small percentage of people actually end up needing residential care ...

Very good point there treliac. My mind was numb with this announcement and working out how the hell they thought it would be affordable. So maybe it could work as an insurance type scheme with enough contributors of £8K? Depending on whether people pay or not?

epz_2

well given the weekly cost of care can be hundreds a week (1) i would bet the market risk is a lot more unless they are planning on offering this as a private sector type insurance policy.


Frankly i dont see how this can be good news for the bulls since it means the government will tax the working people that buy houses more hence less disposable income or are more likely to sack them if they work for the state.
It also means old folkes have less incentive to sell up and give the cash away to youngsters starting out before the state gets it. Old people tend to be the top of the housing chain and this does two things to cut the legs away from the bottom.


(1) how it costs that to basicly house someone with perhaps one minimum wage employee per 20 is beyond be but as para handy said a long time ago "theres money in old people"

roddydogs

You get the money by re-mortgaging your house (Equity Realease), plenty of 65 year olds have £8,000 to spare.The snag with this scheme is that what happens to the over 65s who cant get the "insurance" as they wont touch someone whos already got Dementia, or other problems, what happens then?

stonethrower

While I dont think this policy is perfect, something has to be done. I cant see why someone who has worked hard and paid tax all their life should have to sell their home.
Can someone tell me if an old person goes into a home on a temporary basis will the £8000 cover them.