LCP Proposes Auto Enrolment Model to Fund Social Care

Millions of people aged 40 and over, including pensioners, could join a proposed social care funding scheme designed around workplace pension auto enrolment principles, according to proposals from LCP aimed at supporting a future National Care Service. LCP proposed an opt out model in which people over 40 would pay 1p on the basic rate of income tax to build discounts toward future care costs, according to Professional Pensions. The proposal seeks to replicate the approach used in workplace pensions, where automatic enrolment has increased participation by allowing people to opt out rather than requiring them to sign up.

LCP said the social insurance model has generated considerable interest from the government as it considers ways to fund its proposed National Care Service without breaching financial limits.

The separate report from Sudbury Mercury said the idea could allow millions of people, including current pensioners, to prepay toward care expenses and protect savings from future care costs. The scheme would use automatic participation for eligible people aged 40 and above, with contributions building up potential reductions in care costs over time, according to the reports.