Only 'difficult options' remain for long-term care

Wednesday 19 August 2020

A set of ‘unpalatable options’ for funding long term care have been voted on in the States of Deliberation, with propositions for homeowners to contribute more to their own care rejected.

Between an increasing demand for long-term care and an ageing population, the scheme runs the risk of running out of funds by 2047. A policy letter by Employment and Social Security proposed a number of options to address this.

The vast majority of proposals, including increases to ‘co-payments’ made by individuals in ‘States’ Rates’ care beds, higher contribution rates, and allowing the Insurance Scheme to cover care at home, were approved.

However, there was considerable debate surrounding proposals for deferred property loans, whereby homeowners with assets above £350,000 would be required to meet the first £35,000 of costs for their care.

Some Deputies felt that this unfairly penalised people who had worked hard to become homeowners and contributed to the community in other ways. Deputy Prow said that it was not “reasonable, fair or proportionate" to do so, and that people could not go back in time “to foot a bill that they were promised would never arrive.”

Pictured: Deputy Heidi Soulsby warned that if the States continues to ‘kick the can down the road’ on the issue of long-term care, they will be “in danger of running out of road”

Deputy Neil Inder pointed out that most homeowners would be above the £350,000 threshold, but would not necessarily be able to afford that cost, as the average cost of housing on the Island is so high.

He felt it was “grossly unfair that the working man and woman are going to take the greatest hit” when there are islanders with considerably higher wealth who would be more than able to foot the bill, and suggested that the States could find make itself more cost-effective to find money for the scheme.

These proposals were the only section of the policy letter to be lost when it came to the vote.

However, several Deputies said that something fairly drastic needed to be done to resolve the funding issue. ESC President Matt Fallaize said that there would not be an easy solution, and that the States’ ‘getting its own house in order’ would not go far enough.

Pictured: Deputies Peter Roffey and Lindsay De Sausmarez suggested that, while the options on the table weren't particularly palatable, the States needed to pick a direction and tackle the growing issue of funding for long-term care.

Chief Minister Gavin St Pier noted that anyone currently over the age of 40 will not have covered their own costs by the time they need to receive care, which will increase the burden on those under the age of 40.

“The biggest breach of promise will be if, in 2040, this scheme runs out of money, and people who have been paying into it for 40 years won’t be able to access the benefits of it.”

In her closing remarks, Deputy Michelle Le Clerc said that she was disappointed by characterisations some deputies made of those who seek income support, or are unable to climb Guernsey's property ladder. She, along with Deputy Barry Brehaut, were concerned that others were generalising those who aren't homeowners as people who haven't worked hard enough, or made poor decisions.

"Why should anybody be excused from paying a reasonable amount towards their care, based on the portrayal of a section of our community who, through no fault of their own other than the alleged 'feckless' approach to life, have failed to achieve a level of income sufficient to purchase a property?" she said.

"Many people wouldn't hesitate to spend £35,000 on a new car, or a new kitchen, but are unwilling to spend it on their own care, or their families and loved ones."

The States has agreed propositions 1 to 14 and 18 to 20. It rejected propositions 15 to 19 attached to the Supported Living and Ageing Well Strategy: Extending Life of the Long-Term Care Insurance Scheme: https://t.co/1xT9aONt2T

— States of Guernsey (@Govgg) August 19, 2020

With the rest of the proposals carried, the first increase to individual co-payments will come into effect on October 5, with several other increases between now and 2023.