2.15pm

Tories set for policy switch on long-term care funding

The Tories look set to adopt plans for reform of long-term care funding based on a partnership model whereby the state matches contributions made by the individual.

The move, signalled by shadow health minister Stephen O'Brien at a fringe meeting on the care needs of the ageing population, would pave the way for cross-party agreement on funding reform - whatever the outcome of a general election.

Labour leaders indicated at their conference last week that they were preparing proposals along the lines of the partnership model set out last year in an independent report by Sir Derek Wanless, the former chief executive of NatWest. But the Conservatives have until now not shown their hand.

At the last general election, the Tories advocated a "limited liability" model, by which the state would guarantee care costs after the individual had met their own expenses for a set period, such as three years.

Mr O'Brien left little doubt that the policy would be switched. He told the fringe meeting that while no decision had been taken, "I think it's fair to say that we are heading down the road of the partnership model".

It is likely that both the Tories and Labour will balk at the price tag that Sir Derek attached to his model, which would guarantee free care up to 66% of a "benchmark" package and then match individual contributions pound for pound to the 100% level.

His report, for the King's Fund healthcare thinktank, costed this at £3.5bn a year more than existing arrangements but estimated that the net increase would be £1.7bn if some welfare benefits were transferred.

By adjusting the figures in the model, however, the costs could be reduced. Mr O'Brien said calculations were being compared with those of the limited liability model, but the partnership approach was "winning in our considerations at the moment".

The fringe meeting (on Monday evening) was jointly organised by charities Help The Aged, Help The Hospices, the Parkinson's Disease Society, the Alzheimer's Society and the Long-Term Conditions Alliance.


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Tories set for policy switch on long-term care funding

This article was first published on guardian.co.uk at 16.15 BST on Tuesday October 02 2007. It was last updated at 16.15 GMT on Tuesday November 06 2007.

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