In 2010 we consulted on whether the disregard for products such as Investment Bonds should be removed given it potentially created a perverse incentive, particularly where they included a very small amount of life insurance. Most respondents agreed with this proposal.
We also consulted on whether pre-paid funeral plans should be disregarded for the purposes of the financial assessment. Most respondents agreed, although a number expressed some concern around the detail, for example how much should a pre-paid funeral plan be worth for the purposes of a disregard and felt that this should be limited to around £3,000-£4,000.
These were not implemented at the time as the announcement was made that the recommendations of the Commission on Funding Reform for Care and Support would be introduced and therefore the current system would be maintained.
Given it is sometime since we consulted on these questions, we would welcome views on we should introduce this for 2015.