Cass Business School calls for LTC bonds
‘Long term care bonds’ should be created to help solve the funding crisis, according to one expert.
Speaking at a seminar “If not Dilnot, what?” at the House of Lords today, Les Mayhew of the Cass Business School said a straightforward savings bond, similar to NS&I premium bonds, could encourage people to save for their potential care needs.
It would target “people who have no assets or virtually none and low income”, he said, with an incentive such as a prize draw.
“Over a period of 15-20 years people would amass a reasonable amount of money that could pay for 20, 30, 40 weeks of care,” Mayhew said.
He added that while this is clearly not enough for a long-term need, it would at least reduce some of the burden on the state.
Such a product would have to be “regulated and kite-marked”, he said.
Mayhew also suggested that new annuity products could be designed where the payments increased if the policyholder became disabled, and rose further if they went into care.