Warning over care costs of older people

Caring for older people could cost three times as much as it does today by 2050, according to the Organisation for Economic Cooperation and Development.

The body claims that 10% of people in the most industrialised nations will be more than 80 years old by this time, up from 4% in 2010 and less than 1% in 1950.

With member countries of OECD spending 1.5% of GDP on long-term care, the body predicts that the spending could triple over the next 40 years. Its report said that nations must face up to the challenge of care for the elderly, and 'muddling through' is not good enough.

Angel Gurria, OECD secretary-general, said: 'With costs rising fast, countries must get better value for money from their spending on long-term care. The piecemeal policies in place in many countries must be overhauled in order to boost productivity and support family carers who are the backbone of long-term care systems.'

The report has also warned against reliance on family, pointing out that low pay and hard working conditions can lead to high turnover in the care sector, with some countries struggling to meet demand. Germany, Holland and Sweden have all boosted pay and conditions in the sector, helping retention of staff, although the OECD highlighted a possible need for more migrant workers.

Copyright Press Association, 2011