Overview

This bill establishes a publicly owned insurance body to help homeowners avoid selling their homes to fund elderly social care. Homeowners can purchase insurance to cover the cost of their care, protecting their property. The insurance is optional and doesn't change existing social care regulations for those who choose not to participate.

Description

The bill creates the Public Social Care Insurance Body, a government-owned company, to offer insurance against needing to sell one's home to pay for elderly residential social care in England.

Insurance Cost and Payment

The insurance cost will be a fixed fraction of the property's value, net of mortgage, calculated to cover care costs and administration. The cost considers the proportion of homeowners needing care, care duration, and current care costs. Couples can purchase a joint policy at a reduced rate. The premium is not affected by the homeowner's health, although sex-based differentiation may be regulated. Payment can be a charge on the property (payable upon death or sale) or a cash payment.

Care Entitlement

Policyholders who need elderly residential social care receive care from their local authority, reimbursed by the insurance body, until the cumulative care cost equals the insured property value. After this point, the local authority assesses entitlement considering assets and income (excluding the insured home). The insurance does not affect NHS healthcare entitlement or the obligation to pay accommodation costs.

Timing and Eligibility

The government will contact residents twice yearly, two years before and after reaching state pension age, to explain the insurance. Policies can only be purchased after reaching state pension age, within two years. Couples purchase joint policies after the older spouse reaches state pension age. Existing state pensioners may have a two-year grace period to buy into the scheme.

Government Spending

The bill requires Parliament to fund any government expenditure related to the bill's implementation and any increases in existing Act payments. The government can also provide financial assistance (loans, grants) to the insurance body. The exact financial implications are not specified in the provided text.

Groups Affected

• Homeowners in England: Can choose to purchase insurance to protect their homes from being sold to pay for elderly residential social care.
• Local Authorities: Will be responsible for providing the care and will be reimbursed by the insurance body for insured individuals.
• The Public Social Care Insurance Body: A new government-owned entity managing the insurance scheme.
• Elderly People: Those requiring elderly residential social care may benefit from protection of their assets through this scheme.

Powered by nyModel