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As an economist, I take the following view:

First, the only reasonable way to pay for such care is insurance that spreads the risk of high-cost care across a large group of people. Any coverage, both in terms of care and payment, has to be comprehensive. If people are allowed to opt out, there might be an imbalance in the needs and ability to pay of the cohort that eventually seeks social care.

Second, since voter resistance is more likely if people are required to pay for care upon retirement – given that the benefit from an upfront payment is uncertain – a tax on people's estates at the time of death is the most reasonable way to raise the money needed. Tax can be adjusted to take into account the number of years for which someone has benefited from care, thereby aligning benefits with costs for each individual.

Finally, any policy of funded social care should include a provision to allow people to work beyond 65 years of age if they so desire. It would allow a sizeable proportion of the elderly cohort to add to their wealth, thereby increasing their ability to pay for care and also the revenue generated by the tax.

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