Kames Capital and Target Advisers, the team behind the Kames Target Healthcare Fund, are calling on the Commission on Funding for Care and Support to provide greater clarity into its proposals for funding long term care in the UK.
Kames and Target believe that despite the Commission reporting back to the Government in July 2011, there are still many questions left unanswered.
The Commission has proposed that an individual’s lifetime contribution towards their social care costs should be capped at £35,000 and once this limit is reached then they would be eligible for full state support. It also proposed that the means tested threshold above which people are liable for their full care costs should be raised to £100,000 from £23,250 at the time of the report.
Andrew Dilnot, who chaired the Commission, is recently reported to have the backing of the Prime Minister David Cameron for his proposals, but Kames and Target believe greater clarity is needed into how the proposals will work in practice.
Gillian Bowman the fund manager of the Kames Target Healthcare Fund says: ‘We welcome the fact that care funding is still on the political agenda. But given the UK’s demographics, with the number of very elderly and those with chronic illnesses and dementia increasing dramatically there is growing demand for care. Good care comes at a price and there is an urgent need to clarify how it will be funded going forward. There are a lot of unanswered questions in the Dilnot report and we look forward to seeing more details.’
Target Advisers managing partner Kenneth MacKenzie says: ‘Dilnot’s proposals only cover the care element of the costs, which represents approximately 30% of the total fees of the residential sector. How will the extra 70% towards the cost of the accommodation be funded?
‘We also need to have clarity on what processes will be put in place to ensure there is a fair and proper way of means testing those entering care with savings above the proposed limits.”
The £75* million Kames Target Healthcare Fund invests primarily in newly built properties that are designed to be care facilities. This ensures the provision of excellent purpose built accommodation which, in turn, is managed by operators who share the fund’s philosophy of providing first class care to those most in need.