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City financiers should be given a key role in finding ways to fund long-term care, according to the Square Mile's figurehead. In an exclusive interview with The MJ, the lord mayor of London, Ian Luder, said finance and insurance experts in the City could help resolve the crisis in funding care for older people. His comments came as local government admitted the current system – which costs more than £16bn a year – was ‘no longer fit for purpose'. As the Department of Health consults on its Green Paper on social care, he compared the size of the problem to that of global warming: ‘Like climate change, the ageing population is upon us now. This highlights the need for urgent reform, and any new system of long- term care must involve private finance.' His comments coincided with the launch on Thursday of a report by the Cass Business School for the City of London Corporation – the council which covers the Square Mile – exploring funding options. It reveals only 400,000 UK households out of 6.5m aged over 65 can afford the current costs of long-term care. But the lord mayor told The MJ this must change, He said: ‘The question of long-term care is something that needs to be addressed now by all relevant parties – households, industry and government. ‘The industry is looking to respond in an appropriate manner and come up with the ideas, and funding, needed in the future. However, the insurance and financial services sectors need the Government to define the possibilities available to them more clearly. Waiting idly for the Government to impose new rules is not an option.' Suggestions include better equity release schemes, top-up insurance and bonds for people with no assets. Schemes could be run as public-private partnerships so the market could ‘expand significantly'. But the lord mayor warned service reform, including in Scotland, which has a system of free care, was also vital. ‘Services need to be better organised and more transparent,' he said. ‘A more "joined up" approach would benefit everybody, especially those people at the point of need who have no provision.' The report was published as social service chiefs met in Harrogate to discuss care reform. Cllr David Rogers, chair of the LGA's community wellbeing board, said: ‘Let's be clear, we cannot wait any longer to fix the system. The combination of insufficient funding, increased demand and escalating costs is already placing an immeasurable strain on adult social care. The system is not fit for the challenges of the 21st century.' A Department of Health spokesman welcomed the lord mayor's comments. ‘The Care and support Green Paper aims to make care simpler, fairer and more affordable for everyone. We welcome the mayor's comments and would welcome the City getting involved with the debate. But this is a debate for the whole country, and we need to build consensus on the way forward.' Click here to read the transcript of the interview with Ian Luder.

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HEALTH

Involve City in cost of care says lord mayor

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