Social care system standards could be improved by adopting the model of the state pension, according to a government report.

The report, written by Damian Green MP for the Centre for Policy Studies, argued that the current care system is “financially and politically unsustainable, as well as opaque and unfair”.

In Fixing the Care Crisis, Green suggested that the government should introduce a new ‘Universal Care Entitlement’, that “guarantees everyone a decent standard of care”, while encouraging people to top this up via a ‘Care Supplement’.

This would be something similar to an annuity or insurance policy, coming from people saving small amounts across their working life through the payment of a lump sum upon retirement, or via equity withdrawal from people’s homes.

Green hoped that this would protect councils from the “soaring costs of care” and “fix” the incentives introduced in the 1990s which gave councils the responsibility for care costs.

Commenting on the report, Quilter tax and financial planning expert, Rachel Griffin, said: “Pension policy is far from perfect, but when compared to other areas of policy, such a social care, it is miles ahead. Today’s proposal from Damien Green applies the logic of the pension system and it’s easy to see why.

“Having a basic amount pledged from the state with private provision covering the rest splits the responsibility of care funding in a manner that is understandable and palatable to the public.”

Aegon pensions director, Steven Cameron, also welcomed the announcement, but warned that the system needs to be “adequately funded” to ensure “good quality care” throughout the UK.

He continued: “As our society increasingly enjoys longer lives, this inevitably comes at a cost. While this has proven particularly politically sensitive, we urgently need an open debate around how to pay for this, including the potential for increased taxes, earmarked for social care.

“Ideally, a new deal would gain cross-party support.”

The report detailed that social care reform will need to provide sufficient funding to “plug the gap” created by an ageing population and be fair across generations and between individuals.

Additionally, it said that the supply of care beds and the provision of retirement housing should be increased, while securing public and cross-party consensus.

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