Funding solution protects three-quarters of people’s assets

William Laing

Elderly people would be allowed to keep three-quarters of their assets under a long-term care cost sharing solution proposed by leading health economist William Laing.

The Personal Asset Protection Guarantee (PAPG) White Paper proposes dividing the cost of long term care between the state and individuals with care needs who have the resources to pay for themselves.

William said: “People need a straightforward and effective mechanism which allows them to plan for their long-term care without worrying this will become a burden for their families, either before or after their death.

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“Insurers need to be encouraged that there are real opportunities to build long term care insurance products around whatever scheme is put forward by government. And government needs a scheme which is inexpensive to administer and monitor.”

“The novel approach that I am proposing in the PAPG offers all of these possibilities. It requires the value of an individual’s assets to be assessed by their local council at the time they are found to need care and the individual will be guaranteed that once a certain percentage of their assets have been spent down, they will be eligible for support from the council, subject to income related user charges.

“My calculations indicate that a PAPG that allows individuals to keep 73% of their assets would cost the state the same as an asset threshold of £100,000 and a lifetime care cost cap of £72,000.”

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