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| 'Target winter fuel benefit to pay for elderly care' | 'Target winter fuel benefit to pay for elderly care' |
| (about 1 hour later) | |
| By 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 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. |
| Health Secretary Jeremy Hunt said a funding model was yet to be decided. | 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 pay for their care costs if they have assets of more than around £23,250. Similar systems exist in Wales and Northern Ireland, but in Scotland personal care is provided free. | As things stand, older people in England have to pay for their care costs if they have assets of more than around £23,250. Similar systems exist in Wales and Northern Ireland, but in Scotland personal care is provided free. |
| Under the proposals from Mr Burstow and the Centre Forum, the cap on the amount people should pay towards social care costs would be set at £60,000 but the amount of assets people could hold would rise to £100,000. | Under the proposals from Mr Burstow and the Centre Forum, the cap on the amount people should pay towards social care costs would be set at £60,000 but the amount of assets people could hold would rise to £100,000. |
| They said winter fuel allowance should be limited to those receiving pension credit. | They said winter fuel allowance should be limited 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 per household, 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. |
| A trade off | A trade off |
| Mr Burstow, the former care services minister, said: "Social care isn't free, but it could be a lot fairer for those who have worked hard all their lives. | Mr Burstow, the former care services minister, 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." |
| He said there were 100,000 pensioners with incomes of more than £100,000 a year and questioned whether it was "right" to continue to pay them winter fuel allowance as many of them admitted to using the money for other things. | He said there were 100,000 pensioners with incomes of more than £100,000 a year and questioned whether it was "right" to continue to pay them winter fuel allowance as many of them admitted to using the money for other things. |
| 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, people born on or before 5 July 1951 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. | 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. | "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." | "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." |