Individuals are not the only ones who need to think about how to finance their long-term care.

The Government also faces financial trouble in the future if it is to continue to provide care for the elderly as it is doing at present.

The greying of the population has focused attention on pension provision.

But while the Government has been busy defusing the pensions time bomb with the new State pension fund and by encouraging people to take out private pensions, it is only recently that it has turned its attention to the care issue.

As the population ages and people live longer, the numbers requiring nursing care are set to soar. As a result, costs are projected to increase threefold over the next 30 years and someone will have to foot the bill.

The Department of Social, Community and Family Affairs has commissioned a study on the future financing of long-term care which is expected to be completed by mid-summer.

Among the areas to be examined by consultants Mercer are the potential of the PRSI system to fund long-term care, whether the current system of funding through taxation should continue and the potential of the private sector, or a combined public/private sector approach to assist in long-term care provision.

Despite the recent controversy over mismanagement by health boards of subsidies to patients in private nursing homes - with some nursing home residents forced to pay for all their own care - the State is obliged to provide support to those who need it.

It provides a subvention toward the cost of nursing home care for those unable to meet any or part of the cost, who have been assessed as needing such care and who pass a means test.

This takes account of your income and the income of your spouse or partner.

The subsidy can be refused if you have assets of more than £20,000, excluding your own home, or if your home is worth more than £75,000 and is not occupied by a spouse or dependant and your income is more than £5,000 per year.

From April 1st, the three maximum rates of subvention will be £150, £120 and £90 depending on the level of physical or mental dependency.

The maximum grant is payable to those whose income doesn't exceed the maximum old age pension rate by more than one-fifth. At present, you can have weekly income of £102.60 and get the maximum subvention.

Subventions are also currently the subject of a review by the Department of Health which is due to be published in mid-April.

The Government is reported to be considering imposing a tax on the estates of elderly people who have benefited from state-subsidised nursing home care after their death in a bid to recoup some of the costs.