Britons urged to spend more on care for elderly

The government should shoulder more of the financial burden of caring for the elderly and Britons should be urged to buy insurance to cover potential costs, a report said on Monday.
Like other European countries, Britain has an ageing population. Many elderly people need expensive care either at home or in special accommodation at a time when state spending is shrinking and family budgets are under huge pressure.
"We need to spend more on social care — both now and in the future. This needs to come from both individuals and the state," the government-commissioned report said.
Residential care for the elderly is means-tested and anyone with more than a relatively modest 23,250 pounds in assets has to pay their own way. As a result, older people fear that their life savings could be swallowed up by care costs, leaving them nothing to pass on to their children.
The report recommended that individuals should pay no more than between 25 and 50,000 pounds towards their care costs — with 35,000 pounds seen as a fair cap.
The state would take on the additional cost — a figure of up to 2.2 bln pounds.
That will cause a headache for a Conservative-led coalition determined to cut public spending. It also runs contrary to its efforts to shift the burden of paying for things like university education and public sector pensions from the state to the individuals benefiting.
Political parties have debated the question for several years, but there are no simple and cheap answers. The government is expected to respond to the report shortly, but does not have to implement it.
Capping costs would allow financial companies to tailor insurance products to cover that potential liability. At present, insurers are reluctant to cover what could be a limitless cost.
The report, led by economist Andrew Dilnot, also said the threshold beyond which no means-tested help is given should rise to 100,000 pounds from 23,250 pounds.
How to look after the elderly has risen back up the political agenda after care home provider Southern Cross ran into financial problems, raising concerns about the welfare of its 31,000 residents, many of them frail.
The government has said it will not bail out the company but indicated that local authorities might try to keep homes running, rather than shunt around vulnerable people.