Even After Care Is Reformed We Will Still Need A Care Savings Culture

Tory Mps Back Plans For Care Isas

by Dr. Ros Altmann

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Ros Altmann, Director- General of Saga, comments on calls to means-test pensioner benefits:

It is great to see Tory MPs back plans for Care ISAs – now we need the Treasury to act to introduce a special ISA allowance for care savings.

Following today’s recommendations by the influential Conservative MPs in the publication ‘Policy Bites named Seven Shots in the Arm of Britain’, Dr Ros Altmann, Director-General of Saga, comments on their call for Care ISAs:

“We are delighted to see that our call for the introduction of Care ISAs is gathering momentum and we welcome the recommendation made in this report by MPs. Currently the signs are no-one is saving for their own care – and we need a giant leap forward to change this situation to help families who will be facing difficulty in years to come.

“We urge the Government to introduce a new Care Savings Allowance for the over 50s to allow tax free savings towards care up to a £50,000 limit for themselves or their relatives. Even if care funding is radically reformed in the future, it is very likely that individuals will still have to fund a large portion of their care costs themselves so it is vital that we help people put money aside just in case.

“Our hope is that a Care ISA scheme will be launched in the next budget which will help savers prepare for care and set aside money in a savings scheme that will be tax free as long as the money is used to pay for care – for themselves or their loved ones. Importantly this is also about the Government being clear with individuals about what is expected of them around funding of their own care needs now and in the future.”