Social Care

Baroness Altmann Excerpts

Thursday 7th December 2017 Lords Chamber

[Lord O'Shaughnessy]

That is a novel suggestion. We usually talk about young people going off the rails, but I did not realise that that was true of the prison population. I have not heard such a proposal. I shall certainly take it back to my colleague, the Parliamentary Under-Secretary of State for Community Health, who is leading the carers strategy, so that we can look at whether it might be possible.

[Baroness Altmann (Con)]

My Lords, in the context of our demographics, with the current baby-boomer generation foreseeably entering the age at which they will need care in the next 10 to 15 years, no money has been set aside, either at public sector or at the private sector level, to cope with the rising costs of care. Councils have increasingly rationed care so that they exclude preventive expenditure to help people avoid extreme need. Whatever happens with this review, does my noble friend agree that families will need money set aside if they are going to pay for care? There is no automatic provision. There is a state pension; there are huge incentives for private pension provision, but there is nothing to build up money that would pay for care. Will my noble friend comment on the urgency of helping families understand the importance of, for example, using some of their ISAs as an allocated fund for future care? People in their 60s and 70s have ISAs and pensions. Perhaps we might allow tax-free pension withdrawals for care, so that, at some point soon, we help families put money into a fund that can last into their 80s and 90s and be there for care—in case it is needed—or perhaps be passed on to the next generation, thus starting an ethic of saving for care as well as pensions.

[Lord O'Shaughnessy]

As ever, my noble friend makes excellent and wise suggestions, which I am grateful for. She highlights an important point, which is that social care is a co-funded service for most people. Most people make a contribution to their social care and the state will often make a contribution, too. Therefore, vehicles that allow people to save up in advance, whether through pensions, ISAs or the other means that my noble friend has suggested, are an excellent idea. I am sure that they will be part of considering the financial sustainability and build on products that are already in the market, whether equity release or deferred payments, so that people can go into their old age with confidence that, whatever their care needs, they will be able to afford them.