Government must identify funding gap in social care, says SHIP
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It is crucial that the government identifies the scale of the funding gap in social care in order for the financial services industry to develop solutions, according to Safe Home Income Plans.
Andrea Rozario, director-general of SHIP, has welcomed a report on social care from the Health Select Committee, which acknowledges the need for the government to engage with the issue of a funding gap in social care services.
She says: “This is extremely important; how is the government and financial services industry to come up with solutions to funding care without a full idea of the scale of the problem?
“As part of this, we support the report’s call for the government to clarify the likely market for financial products that are designed to pay for care. By identifying the possible take-up of these products amongst consumers, the financial services industry will be better equipped to develop suitable products.”
Rozario says the report also urges the government to take on board the recommendations made by the Dilnot Commission last year.
She adds: “A cap on the amount that individuals are expected to contribute towards the cost of any care they need will help people to plan ahead, but there needs to be clarity over these costs and any other associated ones.
“Many may still struggle to save for potential care costs - which is where equity release can play a part in funding a range of options including domiciliary care.”
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