Andrea Rozario, director general of SHIP, said the problem of some older people being forced to sell their homes in order to fund their care needs is a problem which will continue under the funding proposals in the paper.

She said: “However, this is a problem equity release could help. Around 80% of the UK’s wealth is held by the older generation. By providing them with the choice of equity release, it not only allows them to make use of what is likely to be their largest asset, but also gives them a wider choice of care option.”

Rozario said that serious consideration must be put on delivering a simple effective method by which those entering long term care can access an equity release scheme with all the safeguards and rights which people currently receive from products offered by SHIP members.

She added: “We hope that the Government will take this opportunity to work with the private sector to develop workable solutions to the very real care funding crisis the country faces.”

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