This is according to a new report from the Equity Release Council (ERC) which has laid bare the extent of public concern and confusion over the cost of care and examined how later life lending can play a role in a funding solution.
The report revealed how 67% of over-50s said they were determined to stay living in their own home if they ever need care. Meanwhile, three in five (60%) of over-50s said they were fearful of having to move into residential settings.
This determination to receive care at home grew stronger with age, rising to 76% among over-70s, the report, ‘Solving the social care funding crisis: perspectives on the contribution of property wealth’ published by the ERC with Pure Retirement and My Care Consultant, revealed.
Many felt care was too expensive, lacking in public funds and not fit for purpose. One in five adults were unaware many people had to contribute to social care costs in later life and half of the adult population (50%) had not considered how they would pay for long-term care needs.
The report, which also features insights from figures in politics, academia and financial services on the role of property wealth in supporting a broader, sustainable care funding solution also considered the role of public and private sectors in meeting growing demand as well as the benefits of later life lending product developments.
Policymakers have debated a range of care funding solutions over the last decade, including caps on care costs, a social insurance fund, a National Care Service and higher taxes.
Just last week the government published its blueprint to integrate health and social care services and has pledged to bring forward proposals for broader social care reforms this year.
Funded care
The ERC’s research suggested nearly half of UK adults (47%) felt funded care should be available for everyone to access, up to a certain point, with the option to top this up using their own finances.
What’s more, it also revealed how 5.5 million people and their families (10.2%) had to use their own income or savings to pay for a parent or elderly relative’s care and 4.1 million (7.7%) people and their families had to sell a parent or elderly relative’s home to pay for care needs.
David Burrowes, chairman of the Equity Release Council, said: “The country is crying out for a care funding plan that is fair for all and sustainable in the long-term.
“We welcome the government’s commitment to progress social care reforms this year to help people live independent lives for longer.
“With this issue firmly back at the top of the agenda, we urge government to bring forward solutions that can make state-funded care available to all, up to a point, with people using their own funds and assets to top this up where needed.
“We also need to ensure that care provision can support people’s desire to have their needs met in the sanctuary of their own homes.
“Property wealth can play an important role in resolving this generational crisis. The ability for people to access some of the money tied up in their homes can help realise their ambition to live there independently for longer, by funding extra homecare services, new technologies or making home adaptations.”
Jacqueline Berry, managing director, My Care Consultant, said: “As we await the pledge by the government to ‘fix care’ once and for all, it’s more than likely that most will still have to pay something towards their care if they are to get the level of care they want. With residential property being the biggest asset for many, we feel this report is both important and timely.”
