She said: “We welcome the Governments review of the UK care system and hope that through this process we will – as a society – be in a position to provide better services and assistance for our more vulnerable citizens. We are also pleased that they have decided not to significantly increase the tax burden on all UK citizens as the population is rapidly ageing and we would soon find ourselves in a situation when the needs of the many are funded by the few.
“However, while we agree that the system needs a review, we do not necessarily agree that the Green Paper provides a comprehensive overview of funding options – including equity release. Under the current system with its maximum asset limits, some older people have been forced to sell their homes in order to fund their care needs. This is a problem we believe will continue under some of the funding proposals in the paper and one that we believe equity release could help with.
“80% of the UK’s wealth is held by the older generation and by providing them with this choice it not only allows them to make use of what is likely to be their largest asset, but also gives them a wider choice of care option. Delivering a simple effective method by which those entering long term care can access an equity release scheme with all the safe guards and rights that people currently receive from products offered by SHIP members is something that is worthy of serious consideration.
“We hope that the Government will take this opportunity to work with the private sector to develop workable solutions to the very real care funding crisis the country faces.”