Use your home to pay care costs, elderly told

PENSIONERS who own homes without mortgages should be made to draw money from their property to invest in a new national care fund, Theresa May’s former deputy says today.

Damian Green, the former first secretary of state, will say that the key to tackling the social care crisis lies in unlocking “housing equity” worth £1.7 trillion.

He will propose that over65s should use equity release schemes to pay a compulsory “care insurance fee” of around £30,000.

National Insurance contributions of those aged over 40 would also go into the fund.

Those who are unemployed or still have substantial mortgages on their properties would have their fee met by the taxpayer.

Mr Green will say that the approach will lead to a “fairer” care system that will stop people’s care costs from wiping out their inheritance.

He will say in a speech hosted by the Reform think tank and Age UK: “We all believe that the care system needs more money and that contributions should be fairly distributed.

“The idea of compulsory insurance is one we all accept as fair. But different generations can pay their insurance premium in different ways.

“This is a long-term solution which would ensure fairness between the generations.”