Speculative Diversion: Eldercare Vouchers and Tax Breaks for Later-Life Care-Oriented Savings – A Kite That May Never Fly (BBC News)


Lady Ros Altmann has suggested the government could introduce Eldercare Vouchers as a savings vehicle to stave-off hardship in later life and use tax breaks to help people save for care in later life.

The problem, essentially, is that persons credulous enough to save using such financial products would still be onto a “sure-fire loser”, without some form of Dilnott-style “cap” or limit on personal liability for the future costs of care. Without such guaranteed limitations on future exposure to risk, responsible savers would still (as is now the case) be liable to the care system expropriating all (or very nearly all) of their assets in order to cross-subsidise the care of the vast majority of people who make no such plans. Sound financial planning, or financial sleep-walking of a fresh personal variety?

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Britain sleepwalking into care crisis, Ros Altmann warn. London: BBC Health News, November 21st 2016.