ILC-UK, 11 Tufton Street, London SW1P 3QB, 16:00, 05 April 2011

The Future of Care Funding Seminar Series.

“Social Care is an essential human need, something most of us will need at some point in our lives, whether for ourselves or those close to us. How well we look after each other says a great deal about the strength and character of our society.”

Rt Hon Andrew Lansley CBE MP, Secretary of State for Health & Paul Burstow MP, Minister of State for Care Services. Foreword to the “Vision for Adult Social Care” (November 2010).

Since 2008 the International Longevity Centre-UK has been at the forefront of the debate on funding long-term care. Our proposals for a social insurance-based National Care Fund and the development of a private market in care insurance were extremely influential upon the development of policy under the previous Government.

ILC-UK has also made significant contributions to several areas which impact on long-term care. These include:

  • The role of unpaid carers;
  • The integration of health and care;
  • The changing nature of retirement and pension reform;
  • The role of new technology in delivering care; and
  • The costs and benefits of extra care housing.

The work of the Commission on the funding of care and support, led by Andrew Dilnot, will be vital to delivering a sustainable funding solution for long-term care, but addressing this issue alone will not be sufficient to achieving affordable, effective and equitable policy solutions for long-term care in an ageing society.

The Government’s Vision for Adult Social Care, launched in November 2010 set three values. The Government wants to develop social care which gives people the Freedom to choose services and a shift of power from the centre. They want social care to be Fair in terms of funding and they emphasised the need to move towards a shared Responsibility for care between the individual and the state.

In England, gross public sector expenditure on personal social services was £20.1 bn, of which £8.7bn was spent on older people. Julian Forder has estimated additional private expenditure on care of £5.9bn. Additional state support is provided to support the care needs of older people through the Disability Living Allowance (£2.4bn for over 65s) and Attendance Allowance (£4.4bn). In other words, around £22bn is currently spent on care for the over 65s. On top of this, the value of voluntary care has been estimated as double this figure (Mayhew, 2010).

The International Longevity Centre- UK is delighted to be working with Partnership Assurance on a series of seminars exploring the role of the private sector in delivering and supporting care. Partnership is the fastest growing significant life company in the UK and is the largest provider of Long Term Care insurance in the UK, with 80% of the market. It is a specialist provider of financial solutions for people with health/ lifestyle conditions, as well as those suffering from a serious medical impairment. It is expert in the field of medical underwriting and has a unique in-house data set.

These seminars, which tookplace at 11 Tufton Street, will influence public and private thinking ahead of the publication of the report of the Commission on the funding of care and support.

The details of the first seminar are below:

The Private Sector’s role in care
5 April 2011: 16.00-19.00
ILC-UK, 11 Tufton Street, London SW1P 3QB

The foreword to the Government’s Vision stated that they “want people to have the freedom to choose the services that are right for them from a vibrant plural market”. Of course, for this to be possible there has to be adequate funding to support the development of a care market.

This seminar explored the role of the private sector in paying for care. We explored the different options for private sector engagement in care funding in the future. We considered how these models of engagement can be best made to work and consider what Government needs to do to facilitate. We explored the role of insurance and of equity release.

Les Mayhew presented his paper on the “Role of Private Finance in Paying for Long Term Care”. Chris Horlick from Partnership Assurance highlighted current and potential innovations in insurance. Andrea Rozario from Safe Home Income Plans (SHIP) explored issues relating to asset decumulation while Nick Starling from the ABI contributed with his comments on the role insurers play in care planning and Martin Green of the English Community Care Association (ECCA) responded from the perspective of a private sector care provider.

Agenda from the event:

Introduction from Baroness Greengross

Professor Les Mayhew “The Role of Private Finance in Paying for Long Term Care”

Chris Horlick, Partnership Assurance. “The role of insurance in paying for care”

Andrea Rozario, SHIP “The role of Equity Release”

Nick Starling, ABI

Martin Green, ECCA and ILC-UK trustee “The current role and the potential of the private sector to deliver diversity, quality and choice in health and social care services”

Discussion and debate


Professor Les Mayhew's full paper reference: Mayhew, L., M. Karlsson, and B. Ricklayzen, B. (2010) The Role of Private Finance in Paying for Long Term Care. The Economic Journal, Vol 120, Issue 548, F478–F504, November 2010

The presentations from this event are available to view below.