The financial services industry believes it can play a more important role to help people plan and prepare for the costs they will face in older age. The choice and range of financial products, such as insurance, to help people pay for care is currently very limited. There are many reasons for this. Reform of social care may make it easier for the industry to develop and sell affordable products.
We want to understand how a more diverse financial services market could work alongside the state system to give people affordable choices to plan for the future costs of care and reduce the uncertainty and risk of very high care costs that they currently face. It will be important to understand how the Commission’s recommendations could support this and how a range of products (e.g. savings, pensions, insurance, equity release, annuities) might help people in a range of circumstances (e.g. different ages, levels of wealth or good health).
We want to explore how the financial services sector could respond to different options for funding reform – and how financial services products could, together with the state, support user, carers and their families. This includes understanding the barriers to the development of a financial market in social care products and what is needed for the market to grow and work well. We want to understand the potential size of the market and the economic benefits of growth in this area as well as exploring other ways the financial services can support people, for example, by providing information and advice to help people consider the options available to them.
- Read the slide pack that was prepared for the 17 November workshop with the seven discussion leaders and their reference group members, Emerging findings: Financial Services
As a finance professional there is a concern about opening up the market to the financial services sector. How people deal with their finance and pay for social care is important but rather than the let the financial services lose on a market full of vulnerable people I would think there is a place for the thrid sector to be involved. The creation of not for profit financial counselling where there is a social need would be desirable. The financial services doesn’t have a good reputation through misselling of pension plans etc. and at the end of the day they have to make a return despite any apparent good intentions. The argument would be that non profit organisation wouldn’t give as expert advise isn’t sustainable as the CAB does a very good job of debt counselling for example. I don’t know if such organisations are in existence to the level they need to be. The acid test is counselling people on benefits, I doubt you would see a financial services company unless there was a stipulation that a portion of the portfolio of clients had to be in the low income bracket matched with wealthier clients where they could make some money. If I sound cynical the industry oozes returns, commissions etc.which just aren’t appropriate for the social care market. I’ve worked in the social care arena for nearly 20 years with another 20 in commerce so I’m no novice to the social care market or financial services. To develop the market for personalisation is paramount but the ancillary services such as financial advice need to be developed as well and very quickly. The The financial servicves sector have woken up to the ‘opportunity’ and it’s not driven by a social conscience.
I agree with Stephen.
As the fine imposed on HSBC illustrates, Financial services will give poor value in terms of best advice for vulnerable people.
The Social Enterprise model where we have a local centre which users have to pay a reasonable charge for good service (not free of charge) togeher with Financial services providing indemnity backed by a social fund would be a better model.
If Health and Social services can come together and synergies are found around the best care for both nursing and social care based on an integrated model with specific duties on providers to collaborate in care planning should be a way forward.
Future looks like a major shift from Local Authorities funding care to people making either full contribution or some contribution based on ability to pay. As with any contribution, those who have complied need to be rewarded in some shape or form.