Will Government accept Dilnot's suggestion?
Pensioners will be expected to pay up to £35,000 towards the cost of their long-term care before state funding takes over, if the Government accepts the proposals of the Dilnot Commission, according to a report in The Observer.
The commission, due to report next Monday, was set up by the coalition government last year to suggest how to reform the country's creaking care funding system. The insurance industry has urged the Government to define the contribution of the state so that it can develop products designed to help people fund their share of the cost.
Meanwhile, Age UK is calling for the Government to commit to increase spending on social care by £3bn. The charity's "Care in Crisis" report estimates that 800,000 older people who currently need social care do not receive any formal support from either state or private sector agencies. Age UK believes this figure will rise to well over one million over the next four years as a result of cuts to local authority budgets.
According to Aviva's "Real Retirement" report, just 6% of people aged 55 and over have made any provision for funding their long-term care.