PFS reacts to care funding plan

The PFS has responded to the government’s care funding plan announcement in September. Matthew Connell, director of policy and public affairs at the PFS, said: “For far too long a solution to fix the care funding crisis was kicked into the long grass by past governments resulting in far too many people’s lifetime savings being obliterated by their care needs.

“The care funding requirements made many families whose loved ones had spent a lifetime carefully saving to pass on a legacy think ‘what was the point?’ when they saw the cash quickly disappear to pay for care.

“National insurance already provides protection for unemployment, the state pension and healthcare so it has clearly been identified as the simplest and quickest way for social care to be funded via this tax. However, while we have seen the invoice for fixing care, we are still in the dark about how exactly it is going to get fixed.

“This is far from a perfect care funding solution for all as the new cap on the cost of social care only reduces the risk that some people will have to sell their homes to pay for care.”

Dr Connell continued: “The announcement focuses on funding, but we also need to know what this cash will provide as there are issues with the availability and accessibility of different types of care.

“We must all still engage in conversations sooner rather than later about the kind of care we hope to receive and wealth we may wish to pass on. We will still need to financially plan to achieve our own life goals rather than rely on the government’s plan to deliver that.

“We also welcome and look forward to the opportunity to work with the government on ways the financial services profession can insure individuals up to the care funding cap.”

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