Equity Release Council comments on PM statement on National Insurance Contributions increase to fund care

Jim Boyd, CEO of the Equity Release Council, comments on the PM statement on National Insurance Contributions increase to fund care.

“We welcome the Prime Minister’s commitment to address social care funding, which is one of the major domestic issues of our time.

“One of the challenges with increasing National Insurance contributions to plug the social care funding gap is that the cost will disproportionately impact working age people, but to achieve a sustainable solution, it must be fair across all generations.

“Our research has found that the impact of the pandemic has meant two in three (67%) over-50s are determined to receive care at home. To fund long-term care, nearly half of UK adults (47%) back the idea of state funded social care being available to all, up to a certain level, with the option to top this up using their own finances*.

“Enabling people to use assets like property wealth will also play an important supporting role by helping some people fund additional care or modify their homes to fulfil their desire to stay living independently in their homes where possible, while also shouldering care costs from younger generations.”

Sources:

*Equity Release Council report, Solving the social care funding crisis: perspectives on the contribution of property wealth, supported by Pure Retirement and My Care Consultant

Kindly shared by The Equity Release Council (ERC)

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