The development of a whole new financial savings product called Personal Care Savings Bonds (PCSBs) could help ease the social care funding crisis facing the UK.
That’s according to Professor Les Mayhew and David Smith of Cass Business School, part of City University London.
They have authored a discussion paper on the subject, in partnership with the International Longevity Centre UK. The paper was launched at an event at the House of Lords in June
Similar to the Premium Bond, PCSBs could be bought by any adult at a nominal value of £1. Unlike premiums bonds they would accumulate interest as well as pay monthly prizes. However, PCSBs could only be cashable when the owner passes a social care assessment or upon death.
Professor Mayhew has been researching the problems posed by ageing population on health and social care for 15 years. He says:
“Paying for social care is a long term issue and pressures on services will increase throughout the century as people live longer and the population ages. The funding crisis will continue for the foreseeable future unless long term solutions are developed.
“Whilst the Dilnot report capped cost model has gone some way to address the potentially the catastrophic costs of social care to some individuals, the fact remains that insufficient funds are being injected into the system.
“PCSBs could provide the basis for a new way of approaching funding care, in which responsibility is shared by the individual and the state. PCSBs provide an opportunity for individuals from all economic backgrounds to have a stake in their future social care funding needs.”
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