A think tank is calling for a fundamental redesign of how later-life social care is funded in England, proposing a new national insurance-style fund.
Re:State's report, Beyond Caring, argues the current system is unfair and unsustainable, and that successive governments have relied on short-term fixes while unmet need has grown and councils have faced increasing financial pressure.
The proposed Later Life Care Fund would require mandatory contributions of 1.8% of income from the age of 34, invested over time to keep pace with rising care costs. It would include an annual personal care allowance, a means-tested co-payment system, and a protected asset floor of £75,000 — more than double the current level.
The report also proposes abolishing the Adult Social Care precept on council tax and argues working-age and later-life care should be treated as separate funding problems.
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