Agreement paves way for better long-term care planning
The UK insurance industry and the government have signed an agreement designed to help people understand long-term care costs and plan for their future care needs.
The Statement of Intent, signed by the government and the Association of British Insurers (ABI) in January, sets out how they will work together, alongside the implementation of the Care Bill going through Parliament, to:
- help people receive the information and regulated advice they need to plan and make decisions about long-term care and
- create the right conditions for a wider range of long-term care financial products, to give people more choice
Measures in the Care Bill include a £72,000 cap on each individual’s care costs from April 2016, although they will be responsible for other charges, including general living costs if they are in a care home, such as food, energy bills and accommodation.
ABI director-general Otto Thoresen said: "The Statement of Intent sets out our commitment to working with the government to create the conditions for the development of an insurance market that offers a range of products to help people meet their long-term care needs.”
Care and Support Minister Norman Lamb said: "The current care and support system doesn't work and is hugely unfair. People face losing almost everything they've worked hard for or being forced to sell their family home in a time of crisis to pay for the care they need.
"Our reforms will not only stop this from happening but will provide the industry with the certainty it needs to develop products that can help people plan for the future.”
At Royds, our specialists can advise on your rights regarding residential care as well as providing advice to family members around reducing the financial costs of, and planning for, residential care. For more information, please contact us.