Both voluntary insurance and partnership schemes will be considered as possible long term care funding options, according to Health Secretary Andrew Lansley.
Today, Lansley set out the terms of reference for the Commission on the Funding of Care and Support in Parliament.
The Commission will be chaired by Andrew Dilnot, who is pro vice chancellor of Oxford University and was director of the Institute for Fiscal Studies.
He will be joined by two further commissioners, Labour peer Lord Norman Warner and Dame Jo Williams who is currently acting chair of the Care Quality Commission.
The Commission will report within the year and provide recommendations on:
- The best way to meet care and support costs as a partnership between individuals and the state;
- How an individual's assets are protected against the cost of care;
- How public funding for the care and support system can be best used to meet needs;
- How to deliver the preferred option including implementation timescales and impact on local government.
Lansley said: "By 2026, the number of 85 year olds is projected to double. In the next 20 years we estimate that 1.7 million more people will have a potential care need than today.
"We know that one in five 65 year olds today will need care costing more than £50,000, which could force many to sell family homes.
"The answer is clear - we must develop a funding system for adult care and support that offers choice, is fair, provides value for money and is sustainable for the public finances in the long term.
"I want to build momentum on this reform and expect to see legislation in front of Parliament next year."
Paul Bruns and Elaine Parkes
3,000 left to transfer
Record numbers of people aged 90 plus
From 3 to 10 October