IFoA responds to Parliamentary report on social care funding

Commenting on the joint report out today by the Housing, Communities and Local Government and Health and Social Care Committees on the 'Long term funding of adult social care', Jules Constantinou, President-elect at the Institute and Faculty of Actuaries, said:

“Today’s report highlights the unfair impact that the current means test has on those with fewer assets. Our recent research shows that those with assets between £20k and £40k lose at least 80p in means tested benefits for every £1 saved. However, if the Care Act 2014 is implemented in 2020, this drops to 50p lost in means tested benefits for every £1 saved. While this is an improvement, it doesn’t completely remove the disincentive to save for long term care. This is compounded by a complex funding system which makes it difficult for people to understand how much they will need to save. Funding reform needs to be sustainable and communicated in a way that the public can understand.

“We are pleased to see the recommendation to establish an independent body tasked with modelling and future forecasts. Actuaries are experts in this type of long term analysis and well placed to be involved with this initiative.”

ENDS

Contact:
Sonia Sequeira, Media Relations Manager
Tel: 07525 592 198
Email: sonia.sequeira@actuaries.org.uk

About the Institute and Faculty of Actuaries

The Institute and Faculty of Actuaries (IFoA) is a royal chartered, not-for-profit, professional body.

Research undertaken by the IFoA is not commercial.  As a learned society, research helps us to fulfil our royal charter requirements to further actuarial science and serve the public interest. 

Actuaries provide commercial, financial and prudential advice on the management of a business’s assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues.

Members of the IFoA have a statutory role in the supervision of pension funds and life insurance companies. They also have a statutory role to provide actuarial opinions for managing agents at Lloyd’s.

Members are governed by the Institute and Faculty of Actuaries. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of actuaries in society.

The IFoA is available to provide independent expert comment to the media on a range of actuarial-related issues, including enterprise risk management, finance and investment, general insurance, health and care, life assurance, mortality, and pensions.