Former pensions minister proposes auto-enrolment for social care

Sir Steve Webb, a former Liberal Democrat pensions minister and partner at LCP, has co-authored a report proposing a new “social insurance” model for England to fund social care. The proposal suggests an automatic enrolment scheme for taxpayers aged 40 and over, including pensioners, similar to the workplace pension initiative that has enrolled over 11 million people since 2012.

Under this model, participants would have the option to opt out. Those who remain in the scheme would accumulate discounts on future social care costs. After 25 years of contributions, an individual would be fully exempt from contributing toward their personal care costs. Webb argues that this approach would allow citizens to pool the risk of catastrophic care costs and protect personal assets.

The proposed funds could be utilized for home adaptations, support for unpaid carers, and improved access to medical treatments. This comes amid discussions regarding the future of the welfare state, as the report notes that the UK's demographic needs in the 2040s will differ significantly from those present when the modern welfare state was established in the 1940s.