LATEST NEWS - LSE research backs the Care Vouchers proposal

Major new research undertaken by London School of Economics was launched at a Parliamentry Reception at the House of Commons on Wednesday 11th July. The research claims that Care Vouchers would be an effective and affordable way to bring extra funding to older and disabled people whilst supporting those who juggle care and work.

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Tax breaks for carers who work

The UK has an ageing population and a shrinking workforce. Currently half of the six million unpaid carers in this country juggle care and work, and more would work if they could. Tax breaks could help workers with care responsibilities pay for extra care and support services for their older relatives.

It is proposed that the Care Voucher would work in a similar way to Childcare Vouchers, an existing employee benefit which became increasing attractive in April 2005 due to the tax and Ni exemption. Over 12,000 companies in the UK have implemented a Childcare Voucher scheme in order to assist working parents with their childcare costs. The financial savings are realized through tax and Ni exemption which benefits both the employee and the employer.

This proposal has the support of a wide range of charities, older people's groups, employers and employee groups.

How would the scheme work?

Through the scheme employers could provide a benefit for employees of 'Care Vouchers' to be used for purchasing additional care and support services for the people they care for. The benefit would be exempt from both National Insurance and income tax. Employees could then select the most appropriate level of support required from a range of accredited and approved providers.

These services could include:

• Informal support and low level preventative services such as cleaning and home maintenance, befriending schemes and chiropody
• Domiciliary care services such as help with getting up, going to bed, dressing, toileting, personal hygiene, some household tasks, shopping, cooking and supervision of medication
• Telecare and preventative technologies such as gas detectors, flood detectors, motion sensors and bogus caller alarms
• Residential care, either full time or as respite

Benefits for Older People

• Bringing more funding into care and support services
• Helping to deliver the preventative agenda by providing care and support to older people who choose to remain at home
• Raising standards of care through a third party accreditation or approval system such as exists in childcare; this could provide a means of ensuring service providers are checked for criminal records etc

Benefits for Carers

• Helping balance work and care responsibilities, by purchasing additional care and support
• Alleviating pressure on workers with caring responsibilities, helping them to remain in work
• Providing an opportunity for non-working carers to return to work

Benefits for Employers

• Helping employers with recruitment and retention, especially of older workers and women
• Providing an additional benefit to support a diverse workforce
• Increasing motivation of staff and consequently their productivity and the competitiveness of the UK as a whole

How can such a scheme be introduced?

A system of Care Vouchers to support employees with care responsibilities would be made possible if the government introduced a tax exemption for contributions to the scheme - as already exists for childcare and even mobile phones and bicycles.

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