States committee proposes changes to the Long Term Care Scheme without increasing social security contribution rates.

The Long Term Care Insurance Scheme helps ease the financial burden on elderly islanders in need of a residential or care home place.

It has been in existence since 2003 and is overdue a review.

Demand for places is increasing as Guernsey's population ages. For example, Social Security estimates that the percentage of those aged 85 and over will mushroom by nearly 130% over the next 30 or so years.

Deputy Peter Roffey is committee president:

"The Committee is seeking to head off issues we know are on the horizon in the long-term care sector.

We want to stabilise the private care home market, incentivise investment in the sector, and prolong the financial sustainability of the Long-term Care Fund.

The more immediate measures we are proposing are vital to mitigate short-term pressures and ensure the community can continue to access bed-based care services when they need them."

Social Security says the true cost of providing care is as much as £180 per week higher than the payment made through the scheme and the proportion funded by the individual, known as the co-payment.

To counter this, it is asking the States to approve the enhanced rate payable through the scheme to care home providers.

The shortfall will be addressed by increasing the co-payment gradually over five years, from £342 per week to £514, to reflect the true cost of care.

In addition, Social Security will ask those that can afford it to put £10,000 towards the cost of their care, excluding the co-payment. Their ability to pay will be determined by an assessment of a person's capital assets, or income, excluding the value of their home.

It is hoped these adjustments will also encourage further investment in the sector to provide places for an increasing number of elderly.

The States will debate the proposals in 2025.