The government should consider multiple funding solutions to address the social care crisis, an insurance body has urged.
The call came from the first in a series of briefings by the Institute and Faculty of Actuaries (IFoA).
Jules Constantinou, IFoA President and member of the Government’s Green Paper Expert Panel, said: “I believe the actuarial profession is well-placed to offer a unique perspective on potential, long-term funding solutions. Actuaries have a history of quantifying and managing long-term risk and assessing mortality and morbidity.
“Given that reform will need to address both current care needs and potential future needs for the working population, we want to emphasise that there is no one-size-fits all solution for social care funding.”
The IFoA said the social care crisis was being exacerbated by a lack of public understanding around who is responsible for meeting the costs of care.
“A health service which is free at the point of use is not mirrored in the social care system,” the IFoA said.
“For many people, it’s not clear when funding will be met by the state and when the individual will be expected to bear the cost.”
Jules added: “There needs to be more concerted effort to raise public knowledge about the way social care funding operates and to encourage individuals who can self-fund to make necessary provisions ahead of time. As part of this national conversation, we need to debate how the system can be funded in a way that is fair.
“The ageing population will result in a shrinking tax base over the coming decades. When considering how to plug that funding gap, we would caution the government against asking the younger generations to bear a disproportionate amount of the costs for supporting future older generations.”