A blank cheque to the baby boomers

After more than a decade of wrangling, it seems that a deal is finally about to be struck on long-term care of the elderly, by adopting the package proposed by economist Andrew Dilnot.  George Osborne has apparently agreed to a proposal, to be announced as early as next month, to make sure no one pays more than £75,000 towards their care costs however wealthy they are. The threshold below which their equity is exempt will also be jacked up.

The estimated cost of all this is £700 million – money that this government simply does not have. To offer this at a time of cuts to further education, aircraft carriers, local authorities and welfare would be extraordinary. Yet Osborne is contemplating moving into a new sphere altogether: paying for the social care of the asset-rich middle classes.

Gordon Brown was criticised for offering to the elderly electorate universal subsidies such as winter fuel payment and free bus transport; and for extending means-testing to ensure that hundreds of thousands of older people received pension credit.