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'Target winter fuel benefit to pay for elderly care' 'Target winter fuel benefit to pay for elderly care'
(about 3 hours later)
By Nick Triggle Health correspondent, BBC NewsBy Nick Triggle Health correspondent, BBC News
Winter fuel payments should be means-tested to help pay for care of the elderly, a former minister says.Winter fuel payments should be means-tested to help pay for care of the elderly, a former minister says.
A report by Lib Dem MP Paul Burstow and the Centre Forum think-tank, said targeting the allowance would help pay for a fairer social care system. A href="http://www.centreforum.org/assets/pubs/delivering-dilnot.pdf" >report by Lib Dem MP Paul Burstow and the Centre Forum think-tank, said targeting the allowance would help pay for a fairer social care system.
The report said it could fund most of the £1.7bn cost of implementing reforms of elderly care in England proposed by the independent Dilnot Commission.The report said it could fund most of the £1.7bn cost of implementing reforms of elderly care in England proposed by the independent Dilnot Commission.
Ministers have raised concerns over the the cost of those proposals. Health Secretary Jeremy Hunt said a funding model was yet to be decided.
The Dilnot Commission, which was set up by the government, recommended that the cap on the amount individuals have to pay towards their social care be set at £35,000 over a lifetime.The Dilnot Commission, which was set up by the government, recommended that the cap on the amount individuals have to pay towards their social care be set at £35,000 over a lifetime.
The commission argued that such a move would protect people from catastrophic care costs that result in them having to sell their homes.The commission argued that such a move would protect people from catastrophic care costs that result in them having to sell their homes.
As things stand, older people in England have to contribute to their care costs if they have savings of more than around £23,000.As things stand, older people in England have to contribute to their care costs if they have savings of more than around £23,000.
But Mr Burstow and the Centre Forum said that could largely be met by limiting the winter fuel allowance to those receiving pension credit.But Mr Burstow and the Centre Forum said that could largely be met by limiting the winter fuel allowance to those receiving pension credit.
Pension credit takes into account savings and income, and only the poorest retired people qualify to receive it.Pension credit takes into account savings and income, and only the poorest retired people qualify to receive it.
The move would save £1.5bn a year and mean about three-quarters of current recipients would lose the allowance, which is worth between £200 and £300, Mr Burstow's report explains.The move would save £1.5bn a year and mean about three-quarters of current recipients would lose the allowance, which is worth between £200 and £300, Mr Burstow's report explains.
The report also proposed ending the relief on capital gains tax at death. This would raise another £600m a year, it said.The report also proposed ending the relief on capital gains tax at death. This would raise another £600m a year, it said.
Mr Burstow said: "Social care isn't free, but it could be a lot fairer for those who have worked hard all their lives.Mr Burstow said: "Social care isn't free, but it could be a lot fairer for those who have worked hard all their lives.
"By concentrating the winter fuel payment on those eligible for pension credit, we can pay for a cap on care costs.""By concentrating the winter fuel payment on those eligible for pension credit, we can pay for a cap on care costs."
Michelle Mitchell, of Age UK, said introducing a cap on social care costs would "lift one of the great fears of becoming older".Michelle Mitchell, of Age UK, said introducing a cap on social care costs would "lift one of the great fears of becoming older".
But she urged caution over taking away other benefits from the elderly.But she urged caution over taking away other benefits from the elderly.
"We appreciate that the country is facing difficult financial times, but we must be careful that the wider implications for older people of any potential source of funding are fully considered."We appreciate that the country is facing difficult financial times, but we must be careful that the wider implications for older people of any potential source of funding are fully considered.
"Until the government sets out concrete proposals it is difficult to assess what the overall impact would be on older people. ""Until the government sets out concrete proposals it is difficult to assess what the overall impact would be on older people. "
The suggestion that winter fuel payments should be targeted comes amid rising controversy about the allowance. At present, the majority of people aged over 60 are entitled to the cash. The suggestion that winter fuel payments should be targeted comes amid rising controversy about the allowance. At present, people born on or before 5 July 1951 are entitled to the cash.
Last week, Conservative minister Nick Hurd said well-off pensioners should consider giving their winter fuel payments to charity.Last week, Conservative minister Nick Hurd said well-off pensioners should consider giving their winter fuel payments to charity.
Several other MPs have also said the better-off should not get age-related universal benefits in future.Several other MPs have also said the better-off should not get age-related universal benefits in future.
But David Cameron has insisted he is committed to retaining them.But David Cameron has insisted he is committed to retaining them.
Mr Hunt said: "We still have a long way to go if this country is going to be one of the best places in Europe to grow old.
"There is no doubt capping costs - the principle recommended by Dilnot - is the best model. The key question is how to fund it sensibly given the current deficit.
"We are looking at how to achieve this, along with taking action to ensure people do not have to sell their homes to pay for care."
Do you receive winter fuel payments? Should the benefit be means-tested to help pay for social care? You can send us your views and experiences using the form below.