Talks on new care package for elderly

A proposed new care package for the elderly, which will outline the level of contributions the Government is willing to make …

A proposed new care package for the elderly, which will outline the level of contributions the Government is willing to make towards nursing home and community care, will be included as part of a final partnership deal with unions, employers, farming and community representative bodies.

The Cabinet is due to discuss the package during a meeting over the coming two days and will receive an update on the potential of use of equity in pensioners' homes to pay a substantial part of the annual nursing home bill, which will rise to €6.8 billion by 2051.

The sensitivity of the issue means that a Government decision will not be made this week, although a special Cabinet subcommittee is to finalise the proposals over the coming weeks.

The proposals are expected to include a new "needs assessment" system which will examine each case to determine the level of care needed and the ability of an individual to contribute towards that care in terms of both their assets and income.

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A care in the community programme is also expected and will be aimed at providing support to elderly people in their homes.

Once the package is agreed by Government it will be brought forward by Ministers to the ongoing social partnership talks, and is expected to form a key element of the social provision aspect of any eventual partnership deal.

Government Ministers have already received an internal report by civil servants which has suggested that the future shortfall between the cost of care for the elderly could be made up in certain cases through the release of equity from people's homes.

The inter-departmental report forecasts that total spending, both public and private, on residential care for those aged 65 and over will increase from €900 million this year to €6.8 billion in 2051.

It states that "a substantial level of co-payment will be central to a sustainable approach to financing long-term care" and suggests the State could ask people to contribute up to 80 per cent towards the cost of care.

The report notes that the value of housing stock owned by people aged 65 and over is estimated at between €70-€85 billion.

"Given that the average length of stay in residential care for people entering over 65 years is two years for men and three years for women, it is reasonable to conclude that there is considerable scope for people receiving care to fund their contribution from these assets without fully depleting the value of those assets," it says.

The Government is also looking at the possibility of a programme where the State could recoup part of nursing costs from the estate of a deceased person.