On 19 March 2014 the government issued a consultation entitled 'Freedom and Choice in Pensions’.
One of the issues raised in the consultation relates to ‘social care funding’. The financial services industry already supports people to pay for their social care costs through products such as care annuities.
The government expects that the proposed changes to the tax rules from April 2015 will allow the industry much greater flexibility to develop new products which meet people’s social care needs and is keen to hear from respondents about how the new tax rules could be designed to allow this.