Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • September 2018
09

Employers remain torn on how to tackle social care crisis

Open-access content Friday 28th September 2018 — updated 5.50pm, Wednesday 29th April 2020

UK employers remain divided in their views on how long-term funding for the social care system should be met, a new survey by the Association of Consulting Actuaries (ACA) has found.

2


The research shows that around two-fifths of employers believe tax changes should be made to ensure private pensions meet the costs, yet around the same number of disagree.

A similar amount support the idea that people working past the state pension age should pay national insurance to help meet social care costs, while only slightly less oppose this.

Around one-third believe inheritance tax should be reformed to allow more for social care, and almost half disagree, while the majority are "undecided" on a new compulsory insurance scheme.

"Our findings suggest that employers are as uncertain as the politicians as to how rising social care costs can be funded," ACA chair, Jenny Condron, said.

"While tax rises have some traction, a constantly rising tax rate to meet this and other funding priorities seems likely to prove increasingly unpopular, particularly if it falls on the working population."

Despite little consensus around funding, the survey of 349 employers found that 72% believe social care costs borne by individuals should be capped.

Two-thirds think rising costs should be met by generally higher levels of tax or national insurance, with almost half agreeing that these should only be paid by employers.

This comes ahead of a government green paper on social care due later this year, with the ACA arguing that it must look to deliver an "integrated savings policy for later life".

The association also said the paper must offer genuine incentives for those that can afford to save, and recognise that younger generations have no generous defined benefit pensions to fall back on.

"There are really only three choices: increase government funding through taxation, increase private funding or reduce the quality of care," IFoA Health & Care Working Party chair, Tom Kenny, said.

"The policy makers need to stop avoiding this difficult issue, and we urgently need to have cross-party agreement about who should pay and simply get on with making the change to our social care system."


Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession

This article appeared in our September 2018 issue of The Actuary.
Click here to view this issue
Filed in
09

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

New Fast-Growing Team - Actuarial Systems Development

London (Greater)
Excellent Salary Package
Reference
143762

Actuarial Pension Consultant – Scotland/Remote – Up to £90,000 plus bonus

Edinburgh / Glasgow / Remote working
Up to £90,000 + Bonus
Reference
143761

Part Qualified Pensions Actuary– Specialised Pensions Consultancy - Scotland/Remote - Up to £70,000

Edinburgh / Glasgow / Remote working
Up to £70,000 + Bonus
Reference
143760
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ