Emma Soames As if that were not enough to digest, lawyer Leslie Seldon announced he was bringing his age discrimination case to appeal in the High Court, where it will bump into that of Age Concern which is also challenging the default retirement age.
For baby-boomers, none of these announcements has come a moment too soon. This year, 1.3 million people have either come out of retirement to go back to work or have failed to retire. Just imagine how much larger that figure would be if thousands of others had not been shown the door from work on their 65th birthday to an old age they are neither financially nor physically ready for?
A key announcement in the Ageing Strategy is to bring forward the review of the retirement age to next year. Despite the best efforts of several Government departments, I think it safe to predict that within the next 18 months a default retirement age will no longer exist. Also to be greatly welcomed is the promise to consider legislation that will allow grandparents access to their grandchildren, regardless of the antics and changing relationships of their children.
Also, we would all love a smart card system – based on bus pass technology – that will allow us access to local activities tailored to our needs and pockets. Combine this with an electronic health card and it won’t be long before we can run our lives with a few dongles hanging from a keyring. Bliss.
Equally important for older people is the Green Paper on Social Care. This promises to be the beginning of the end of the iniquitous system that excludes millions of people from any help and support around caring, as well as forcing thousands of older people to sell their homes to pay for care. There is much in the Green Paper which is to be greatly welcomed, notably around the creation of a National Care Service which should provide a one-stop shop for all the information and support that is so hard to get – if indeed we can find it at all.
But the nub of the issue is still money – already there is a £6 billion funding gap with more than 1.7 million more people requiring care in 20 years’ time. The current brutal system has got to be changed but, whatever model is adopted, we will have to pay for most of our own care. What will become easier is how and when we have to find the money. Various proposals (see below) boil down to a future system which should be fairer to everyone.
Once a system is decided and bedded in, we should be able to enjoy some sort of peace of mind about our old age, and about how we are going to pay for it.
Paying for care: Tell us your views
1. PARTNERSHIP This basic "top-up" or "co-payment" model would see the State pay a proportion of care and support costs for all elderly or disabled people. The Government would contribute between a third and a quarter of the cost of care for everyone, but more for the poor. Those with assets would have to contribute the rest themselves.
2. INSURANCE A voluntary insurance scheme whereby the State would provide a proportion of care for all, but people can pay into an insurance scheme. Insurance would provide security for those who worry about the cost of care later in life, and they could pay for it gradually throughout their working lives. But if only a few opt into such a scheme, the costs would be higher.
3. COMPREHENSIVE A compulsory new tax for everyone over 65 apart from the poorest. Everyone would have to pay an estimated £17,000 to £20,000 – perhaps by way of a lump sum at retirement. The advantages are that people would know what costs they faced in old age, and the process would be simple and fair. The disadvantages are that it would mean some people will pay a large amount of money for care that they will never need.
Accommodation costs for residential care would not be covered in any of the schemes.
What are your thoughts about the proposals? Join the debate on www.sagazone.co.uk