Cameron says introducing a cap on care costs will also enable providers and advisers to work together to come up with innovative propositions.
Advice is crucial
In the absence of clarity over the future of the care system, advisers have an even more critical role.
Mel Kenny, chartered financial planner at Radcliffe & Newlands, says: “What is important to make clear to those planning to avoid having to pay for their future care, is that they could be leaving themselves at the mercy of the local authority.
"In the absence of a third-party top-up, they risk their local authority funded care being far more undesirable than they could have ever imagined.
"For those closer to needing care, trying to understand the social care system in a crisis is a lot for a loved one to take on. Friends who have been in a similar position can be helpful. However, everyone’s situation is different and a financial adviser that has a focus on care can be well placed to join the dots."
Kenny adds: "The situation around care funding has not changed much since 2015. It has therefore been a stable environment to advise in, with the potential for reform always casting a doubt in clients' minds on whether an action now would also be the correct one under any proposed reform.
"However, a financial adviser can remove distractions from the situation and simply deal with what is known now, with a considered eye on foreseeable change."
This is not the first time plans for a cap have been delayed.
In 2014, a cap was passed into legislation but then delayed in 2016 and then abandoned in 2020.
Curry says: “It is not clear if or when the cap will come into effect. Councils need a lot of lead-in time to get ready to administer it and they will need to be reassured of sufficient funding.
“It’s not clear that will be in place. Also, the implementation date falls after the election, so there is a lot of uncertainty about it.”
Could insurance help?
The absence of a cap limits propositions providers can come up with.
Jenkins says: “In the absence of a cap, insurance products would likely remain prohibitively expensive unless they were taken out at an early age.
“Insurance could certainly play a role in funding care if a cap is introduced as it limits the liability for the insurer, making it more affordable for the consumer.”
Curry says: “Private insurance is not an option. It is not a viable market for insurers and, even with a cap, insurance companies have indicated it is not viable.”
