Social care: a prefunded solution

Reform - 
This report makes the case for social care financing reform and argues for the replacement of the current pay-as-you-go approach with a pre-funded arrangement. Under this proposal, working-age people would contribute a percentage of their income into a Later Life Care Fund (LLCF). These pooled savings would then be managed privately, before being used to fund the care costs of those that contributed. The report argues that taking this approach would limit future rises in spending on later life care and would ensure that in the long run, no generation would be at risk of funding the care of a disproportionately large cohort.

• Report
• Reform publications