Concerns raised over elderly care levy
Commercial insurance
22nd June 2009
The government has unveiled plans to impose a fee to pay for long-term care for the elderly.
A green paper published this month will outline proposals to charge an inheritance levy of up to £12,000 in England and Wales, which would be paid either on retirement or after death to fund nursing home care.
The plans for a state insurance system are intended to relieve the financial burden on the one in five Britons who require long-term care.
Former health secretary Patricia Hewitt explained that she believes "people would be willing to trade a certain amount of inheritance tax for the reassurance of knowing that their elderly parent was going to be looked after free of charge".
Focus groups indicated that as many as 80 per cent of the population would opt into a state insurance system for long-term care rather than place their homes or savings at risk.
A spokesperson for Age Concern and Help the Aged recently suggested that the quality of care home varies widely but there are some "extremely good" facilities available.
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