Annuity-backed products 'could help to provide care solution'

A variety of measures have been put forward by one think tank, which might help the government to meet the costs of care.

Annuity-backed products are among the options that Policy Exchange suggests could be useful in helping the country to deal with care funding in the future.

It believes that one option that should be considered by the coalition's new care funding commission is a hybrid model that would see consumers supplement government support with things like annuity-backed products or insurance.

Meanwhile, the body has also highlighted the potential creation of a social insurance model or a King's Fund partnership model.

Discussing the present situation, Health and Social Care Unit Head at the think tank, Henry Featherstone, commented: "We now have an opportunity, and the time, to properly think through and implement a fundamental reform of the way that we pay for long-term care of the elderly."

Prior to last month's Budget, Age UK suggested that social care should not be affected by cuts.

Posted by David Shuker.