Social care  

Industry split on level of social care cap

Cameron said: “They might do so by taking out an insurance product or by earmarking savings so they have an amount up to the cap available. 

“Care Isas are one suggestion, but we’d favour individuals trying to save more in their pension. When going into drawdown, they could notionally ringfence some of the proceeds up to the cap and seek to live off the balance.”

Milton agreed, saying other ideas might be unveiled “at the same time as the official announcement of the NI increase”.

But Lowe cautioned policy could be “a little way off” as so many ideas have been floated in recent times.

Lowe said: “The Prime Minister himself suggested yesterday that it may yet be some time before a policy is announced, when he said: ‘All I can say is we’ve waited three decades, you’re just going to have to wait a little bit longer’.

“Whatever solution the government chooses to bring forward, clients will still need the expertise and guidance of financial advisers to help them with their later-life plans.”

Mike Padgham, chairman of the Independent Care Group, said any reform would be welcomed as it has been a long time coming.

Padgham said: “We have long campaigned for better funding for social care and believe that people would be prepared to pay a little more in taxation or national insurance, or a combination of both, in return for a properly-funded, fair social care system.

“This might not be the perfect solution for everyone, but we have to make a start and refine as we go along, rather than keep talking.

“At the same time, this can only be the very start of reform and has to be a part of a root and branch overhaul of the system to make it fit for purpose.”

amy.austin@ft.com

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