abdcare blog



• If asked, most people think that David Cameron (“DC”) will be most remembered for calling a referendum on BREXIT. People may be right but when history does remember DC his broken promises on older peoples social care could be a very close second.

• Most recently Theresa May’s botched election campaign had at it’s core her suggestion that people should use all but the final £100,000 of their savings including their home to fund elderly care. Voters did not like this suggestion and we are now where we are. A question which arises from this suggestion is was it lack of judgement by her or learning from her predecessor DC?

• When DC won his last election in 2015 it was in part based upon a promise that people would only have to pay for the first £72,000 of their elderly care costs known as the “CAP”. The Care Act 2014 was the flag ship for this. Shortly after DC was elected (17.07.15 to be precise) this promise was broken by DC and his Government. The CAP as originally proposed by DC will not ever be introduced, so says Jackie Doyle – Price Health Minister in December 2017.

• In a recent interview with the FT Weekend DC says he was disappointed that the CAP was not capable of being pursued. He explains that he thought this might have been a solution to Long term care combined with supporting insurance products which the insurance industry was never interested in.

• Irony however is alive and well. DC post politics is very much involved with social care as “President of Alzheimer’s Research UK”. Additionally and his lament about the insurance industry might be about to turn full circle. This is because consultations prior to publication of the Governments Green Paper on reform of older person social care has started a debate on the role of the insurance industry led by Royal London Mutual insurer.

• Specifically Sir Steve Webb Director of policy at the insurer and a former Pension Minister has been responsible in part for submitting a paper to government proposing a care product linked to pension income drawdown. The proposal is that a person commits to regular premiums being taken from their drawdown account to be used for their care costs. The incentive is that the government under Royal London’s proposals would allow for favourable tax treatment (tax free) in respect of the premiums and importantly the Government would introduce a CAP on people’s overall care bills. This proposal sounds like déjà vu from DC’s point of view.

• To know more on elderly care options and for a free appointment to find out answers to the questions that need answering email Andrew Douglas or his team on ajd@awdrys.co.uk or simply call us on 0800 072 8636.                                                                                                                              


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