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Social care funding must be sustainable and pensions triple lock needs long term reform

Responding to UK Prime Minister Boris Johnson’s announcement on the reform of social care funding in England, Louise Pryor, President at the Institute and Faculty of Actuaries, said:

“Last week, the IFoA called on the Government to produce a clear strategy for tackling the social care funding crisis in both the short and the long term, in a way that is sustainable and intergenerationally fair. The additional funding announced today through a 1.25% increase to both National Insurance contributions and share dividends from April 2022 will provide much-needed support to a sector long in crisis. However, it raises questions about whether the burden is being shared fairly across the generations.

“The IFoA is committed to leveraging actuarial expertise to inform the government’s proposed solution to the social care funding crisis. We will look closely at the detail behind the proposed new levels of the cap on costs and capital floor on assets to understand their impacts on those requiring care and on wider society. We will ensure the actuarial voice on these reforms is heard as the Government seeks input from experts in professional bodies and the financial services sector, and through the expected White Paper on health and care integration later this year.”

Commenting on the UK Secretary of State for Work and Pensions’ decision to suspend the pensions triple lock for 2022/23, Louise Pryor said:

“We understand the current focus on addressing a one-off distortion of the triple lock for pensions comes as a result of Covid-19. However, we believe that this should not divert attention away from the need for a longer term reform to embed fairness for all generations. Irrespective of immediate measures to address Covid-19 anomalies, it remains crucial as today’s workers become tomorrow’s pensioners, that the State Pension remains fair and sustainable over the long term.”

~ENDS~

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

Notes to Editor

1. The IFoA has produced a briefing note on social care policy in relation to the UK Government's announcement.

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 of London.

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 COVID-19 and its long term consequences, mortality, pensions, life and general insurance, health and care, finance and investment, climate change and sustainability, systems thinking, uncertainty and judgement, and risk management.