The pilot programme is an advice service offering practical solutions to older home-owners with financial concerns.
It provides access to a unique new equity release product – the Home Cash Plan – provided by retirement specialists Just Retirement and endorsed by trade body SHIP.
It has been designed specifically for income-poor older people and allows home-owners to release small sums of money from their property.
It is being run by JRF in collaboration with advice from the Department of Work and Pensions(DWP) in three local authorities, Islington, Kensington and Chelsea, and Maidstone Borough Council.
It will run until summer 2011, during which time each one will be independently assessed by JRF. A final report will be produced after the final assessment in July 2011.
Julia Unwin, chief executive of the Joseph Rowntree Foundation, said: “Around a million older home owners in the UK have at least £100,000 in housing equity yet have such small incomes that they qualify for means-tested benefits, meaning they cannot afford to pay for additional support at home such as gardening or shopping.
“Our aim is to find a practical solution to enable these people to release the equity in their homes, without jeopardising their pension credit, so they can stay at home for longer.”
Andrea Rozario, director general of SHIP, said there are many asset rich and cash poor pensioners in the UK who could really benefit from this type of product.
She added: “The equity release sector plays a vital role in improving the standard of living for older consumers and those taking part in this pilot will – we believe – gain the benefit of being able to stay in their homes longer.”
