‘Elderly should be able to take out property loans’
OLDER members of the community should be entitled to take out ‘property loans’ and it should not be at the control of the state, the chairman of Age Concern has said.
The comment follows news that the States rejected Employment & Social Security’s proposals to investigate whether elderly people could be forced to take out ‘property loans’ to pay for their care in residential homes.
Committee president Deputy Michelle Le Clerc had urged States members to address the looming crisis in long-term care funding before it was too late.
‘A change is required or else the scheme will fail before the majority of those currently contributing are likely to benefit and the States will have to pick up the bill at that point.’
The challenge facing ESS is that islanders are living longer and with more complex needs, and the States’ long-term care fund is predicted to be exhausted by 2040.
The current system is not means-tested and one of the proposals was that pensioners who are cash poor but asset rich should be able to make a greater contribution.
Age Concern chairman David Inglis listened to the debate and was disappointed that the States did not take up the opportunity to at least investigate the potential for equity release.
‘It is not legal in Guernsey and therefore makes it appropriate to carry out some form of review and study,’ he said.
‘The home is a person’s biggest asset and therefore having the opportunity to release equity against your asset is a benefit to someone who may wish borrow for spending other than long-term care needs.’
It might, for example, allow a spend to carry out modification to the house ensuring that the person can stay in their home rather than go into institutional care, something that is a high priority of the supported living and ageing well strategy, ensuring dignity and respect is maintained.
Or it could be spent developing the well being of the individual and the family, thereby being able to enjoy the direct benefits of that gift.
Deputies opposed to the idea felt it would penalise home owners.
States members approved a proposition to increase the long-term care benefits, which are effectively grants paid to the care homes. The basic residential care benefit will increase to £521 per week, and people with more complex needs will be entitled to £1,170 per week.