40% support tax rise to pay for elderly care

About 40 per cent of people are in favour, in principle, of increased taxation or higher PRSI contributions to meet the cost …

About 40 per cent of people are in favour, in principle, of increased taxation or higher PRSI contributions to meet the cost of long-term care for the elderly, according to a new report drawn up by the ESRI.

However, the study also reveals that support for such measures falls away rapidly depending on the extent of the increases involved.

It says that as the numbers of elderly people rise in the years ahead, the cost of providing long-term care will increase significantly.

It forecasts that the number of people over 65 will double to about 1.1 million by 2031.

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A survey of more than 2,000 people commissioned as part of the report found that 58 per cent of the population believed that the bill for providing long-term care was the responsibility of the State.

About 36 per cent believed that families should co-finance the costs involved.

The report says that while 40 per cent, in principle, agreed with higher taxes or PRSI contributions, the amounts which people were prepared to pay was quite low.

A consultants' report for the Government recommended that long-term care could be funded through increases of about €8 a week in PRSI or VAT. However, this proposal was rejected by over 80 per cent of people surveyed.

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent