Funding care: how can each generation pay its fair share?

Donald Hirsch and Philip Spiers

This viewpoint proposes a phased two-track approach to funding care, with an initial charge on inheritance being gradually replaced by funds built up through extra National Insurance paid by younger age cohorts.

A two-track approach could see each generation paying its own costs of care in later life.

Our present system of paying for care needs replacing. The big sticking point is finding extra funding which both covers the growing needs of an ageing population and shares the cost fairly between generations. This viewpoint:

  • proposes a phased two-track approach, with an initial charge on inheritance being gradually replaced by funds built up through extra National Insurance paid by younger age cohorts.
  • suggests such a broad sharing of costs among different generations, linked to ability to pay, could be presented as a fair and equitable settlement.
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