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Fixing the care crisis: Centre for Policy Studies

With the number of over-75s set to double from the current level of 5.3 million in the next 40 years, the need to address the future funding of social care continues to be a problem left unaddressed with the King's Fund recently warning that the situation is moving from urgent to critical.

So former minister, Damian Green MP, has written a paper for the Centre for Policy Studies setting out his proposal for funding adult social care.

The paper argues that the care system should adopt the model of the state pension, with the government providing enough support for a decent standard of care via a new universal care entitlement.

People would also be encouraged and incentivised to top this up from savings and housing wealth by a care supplement. The paper also suggests a range of methods to fill the immediate funding gap of around £2.75 billion.

In decreasing order of preference these are:

  • Taxing the winter fuel allowance
  • Diverting savings from the spending review
  • Potentially imposing a 1 per cent NI surcharge on those over 50.

The paper also provides information about social care systems around the world.

Some Social Care commentators have suggested the measures would not address the funding gap