Private care home operators have backed the Dilnot Commission’s proposals on insurance to help resolve the long-term care funding crisis in the UK.
A survey of private operators carried out by Barclays Corporate and risk consultant Lockton found that 61 percent of operators believe insurance is the best solution for funding care in the future.
The Dilnot Commission outlined a proposal for the insurance industry to step in and support those paying for care themselves up to a £35,000 cap on care costs with the State meeting the financial burden above this level.
Paul Birley, Head of Healthcare at Barclays Corporate said: “It is encouraging that the Dilnot Commission’s recommendations on reforms to care funding have found support with private operators.
“Good quality care can produce incredible results in the improvement of the quality of life of those that receive it but it is vital that a viable solution is found to ensure care is affordable and sustainable for the UK’s ageing population”.
Only 19 percent suggested the Government should increase taxes while a further 20 percent said they believe residents should use their own personal equity to pay for future care.
The survey also asked operators what they saw as the greatest challenges for the sector. The results confirm that the squeeze on margins remains the biggest challenge with the majority -60 percent - citing cuts in fees and a further 46 percent saying staff costs were the two most significant challenges.
Despite the uncertainty around the care funding system and the wider economic outlook private operators remain optimistic about the prospects for their own organisations with 57 percent of providers confident about the future.
Paul Birley continued: “Private operators have every reason to be confident in their futures. They’ve proven over time to be both flexible in approach and able to adapt quickly to changing conditions”.