§ Mr. TimmsTo ask the Chancellor of the Exchequer whether he plans to regulate the marketing of long-term care insurance. [12080]
§ Mrs. LiddellIn December 1996, my predecessor issued a consultation document on proposals to regulate the marketing of long-term care insurance under the Financial Services Act 1986. These proposals were designed to complement proposals by the then Secretary of State for Health set out in his document "A new partnership for care in old age".
The Government do not intend to implement the previous Government's draft Bill on a partnership scheme. We feel that this was only a partial solution designed to help a relatively small number of people and that what is needed is a more fundamental and wide-ranging review of all the options.
In view of this, the Government intend, as set out in their manifesto, to examine provisions for long-term care for the elderly. The Government will make a further announcement on this once the form and content of that examination have been settled.
These policy developments have important implications for the balance of argument for and against early action to regulate the marketing of long-term care insurance. The broader policy debate is likely to have fundamental implications for the future of this market and for its regulation. It is my decision, therefore, that it would be premature to proceed now to amend the scope of the Financial Services Act 1986. Once the broader policy debate has been taken forward, I shall consider carefully the implications for the regulation of marketing of long-term care insurance.
In the interim, I shall of course monitor the market closely for evidence of significant risks to consumers and will take appropriate action if that is warranted.