Responding to UK Prime Minister Boris Johnson’s announcement on the reform of social care funding in England, Louise Pryor, President at the Institute and Faculty of Actuaries, said:
“Last week, the IFoA called on the Government to produce a clear strategy for tackling the social care funding crisis in both the short and the long term, in a way that is sustainable and intergenerationally fair. The additional funding announced today through a 1.25% increase to both National Insurance contributions and share dividends from April 2022 will provide much-needed support to a sector long in crisis. However, it raises questions about whether the burden is being shared fairly across the generations.
“The IFoA is committed to leveraging actuarial expertise to inform the government’s proposed solution to the social care funding crisis. We will look closely at the detail behind the proposed new levels of the cap on costs and capital floor on assets to understand their impacts on those requiring care and on wider society. We will ensure the actuarial voice on these reforms is heard as the Government seeks input from experts in professional bodies and the financial services sector, and through the expected White Paper on health and care integration later this year.”
Commenting on the UK Secretary of State for Work and Pensions’ decision to suspend the pensions triple lock for 2022/23, Louise Pryor said:
“We understand the current focus on addressing a one-off distortion of the triple lock for pensions comes as a result of Covid-19. However, we believe that this should not divert attention away from the need for a longer term reform to embed fairness for all generations. Irrespective of immediate measures to address Covid-19 anomalies, it remains crucial as today’s workers become tomorrow’s pensioners, that the State Pension remains fair and sustainable over the long term.”
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