There has been very little clarity or certainty over funding in the social care White Paper response to the Dilnot report. What does this mean for financial services and its ability to support the gaping funding hole?
Janet Davies, Symponia
In short the White Paper means absolutely nothing for specialist advisers. It is business as usual. It is nothing more than a virtual comfort blanket. It has just paid lip service to pre-election promises and left the nation feeling empty and betrayed.
But what did we expect? Regardless of the colour of the government’s flag, the crumbling, outdated system that underpins the funding of adult social care, has been at the centre of procrastination for at least 13 years. We have witnessed two independent commissions, three public consultations and three white papers.
Perhaps it is time for financial services to steal a march on government. We cannot necessarily change policy but together we can at least become proactive rather than reactive. By helping clients fund their imminent care fees and assisting those younger ones face into their own potential care futures head on, we can remove the fear and uncertainty.
Far too many people are forced to react to a crisis situation. If only they had the chance to step back and consult with a specialist adviser.
A start would be for every adviser to start taking long-term care much more seriously. I am not advocating everyone should suddenly develop an unnatural penchant for the subject, but advisers should at least mention it during every client meeting.
By teaming up with a local colleague they would at least be playing their part while we all wait for 2015 and beyond.
Neil A Sewell, SewellBrydenGunn
In response to the Dilnot report, which recommended a cap on individual care fee funding of £35,000 for individuals with assets of more than £100,000, the White Paper sets out the ambition to promote people’s wellbeing and independence and to create a developed care services market place in the next ten years.
It has outlined the timetable toward this goal, which continues to April 2015, yet leaves the £35,000 cap discussion needing further consultation. This has left everyone without a clear idea of how much care cost to plan for, either now or in the future.
This lack of certainty will do nothing to stimulate demand for care funding products. Long-term care product providers have been left having to develop flexible and innovative products in the absence of clear rules. These rules are needed to address the current, as well as the future, market place for care funding. Developing products will be a challenge since, without demand, there will be little point in providing supply. .
The later life advice market place has its own set of challenges. With the prospect of uncertain care costs, the financial adviser must help the client make the best use of savings and capital, even in the absence of appropriate pre-funded financial products.
One thing is clear – an informed discussion between client and adviser at an early enough stage can enable better cash flow planning and cost mitigation.
