The issue of how to fund older people’s long-term care is one of the trickiest problems confronting policymakers. The only agreement is that reform is needed, and that demand for care will increase in coming decades. Models of state-funded universal free care for older people have usually dominated debate.
However, after a decade of rising property prices, which has created by far the wealthiest older cohort in history, forcing younger taxpayers to fund universal free care now seems like a strikingly unfair proposal.
As an alternative, a National Care Fund would also achieve universal coverage and social minimums of provision, but limit the risk-pool for long-term care to older people only. Auto-enrolment would achieve higher levels of insurance provision than the private sector on its own could achieve. Within this framework, there any many details that would need to be addressed, not least how much individuals would have to pay to be enrolled in a National Care Fund.