Care scheme may need top-ups
Author: The Times - Oct 6, 2009
Elderly people who pay £8,000 to join the Conservatives’ proposed residential care scheme may still have to pay annual top-ups, The Times has learnt. Andrew Lansley, the Shadow Health Secretary, called the scheme "a guarantee that absolutely all fees for permanent residential care would be waived for life".
However, the party acknowledged yesterday that it would set a ceiling on the benefits, meaning that an unknown number of elderly people would have to pay more to cover their fees.
Mr Lansley’s spokesman said that it would be unreasonable for the Tories to be expected to fund accommodation in luxury homes costing more than £40,000 a year, and in such cases it would be reasonable to ask for a top-up.
However, The Times has learnt that the maximum, which is currently the subject of a consultation by the Conservatives, could be dramatically lower.
Insurance industry sources said yesterday that the Tories had told them that the voucher would be worth the average cost of care — £26,000.
Mr Lansley rejected this, and insisted that his modelling had suggested that he could meet the costs of everyone in care homes funded by local authorities. His spokesman conceded, however, that the ceiling — which the party says will be based on the "highest average rate" — has yet to be set.
Mr Lansley’s advisers also conceded that the insurance industry would play a large part in determining the figure, since the scheme would not work without its co-operation. Insurers could attempt to drive down costs to make the scheme as profitable as possible for them.
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