Juarez-garcia A (University of Birmingham) Comas-herrera A (London School of Economics) King D (London School of Economics) Malley J (London School of Economics) Pickard L (London School of Economics) Wittenberg R (London School of Economics) Hancock R (School of Medicine, Health Policy and Practice, University of East Anglia)
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Using two linked simulation models, we examine the public expenditure costs and distributional effects of potential reforms to long-term care funding in the UK. Changes to the means tests for user contributions to care costs are compared with options for abolition of these means tests ('free' personal care). The latter generally cost more than the former and benefit higher income groups more than those on lower incomes (measuring income in relation to the age-specific income distribution). Reforms to the means tests target benefits towards those on lower incomes. However the highest income group are net losers if free personal care is financed by a higher tax rate on higher incomes and the effect on the whole population considered.
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Paper provided by Institute for Social and Economic Research in its series ISER working papers with number
2006-43.
Length: 19 Date of creation: 07 Aug 2006 Date of revision: Publication status: published Handle: RePEc:ese:iserwp:2006-43
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