The cost of Long Term Care has been in and out of the news for many years, but now it seems to be stuck firmly in the ‘in’ tray. Barely a day goes by without more tales of woe hitting the headlines. Elderly people are ending up in the back of ambulances because the support that helped them live independently at home has disappeared. They are spending weeks or even months in hospital because there are no care homes into which they can be discharged.

Care Crisis

The whole system is in acute financial distress. In 2010 the number of people over 85 was forecast to double by 2030, and we are well on track. Successive governments of all hues have failed to tackle the problem robustly. There is no national framework for care – local councils decide who will get what and it is not until a patient’s total assets dwindle to £23,250 that they are obliged to step in. The insurance industry really only has immediate needs annuities and equity release to offer as solutions unless the client has an existing long term care policy. It is very important that advisers discuss the implications of needing long term care with their clients and carefully record the discussion as it is only a matter of time before ambulance chasers get in on the act. Currently, 25% of the population end up needing long term care but this percentage is inexorably rising.


The above is the lead article in our latest monthly News Notes – February 2017. Other topics in this edition include:

  • Auto Enrolment
  • Trustees Beware
  • Defined Benefit Dividends
  • FSA055 Liquidity Risk Systems and Controls Questionnaire
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Haven Risk Management : FCA Compliance Consultants