Andy, I can't disagree with the general sentiment of your argument but, as one person (and family) massively impacted by having my Mother In Law living on site, I have a slightly different perspective!
I don't for 1 minute think the current system is working and in many cases provides very poor care for 'customers'. I don't think that your suggested solution deals with the main crux of the issue. Why is the provision of all elderly care once again the responsibility of the Government?
Many of the elderly that are now requiring care have grown up through a period of massive wealth growth, a beneficial tax regime that supported house ownership, supported 'normal' families with Married persons tax benefits (which are pretty much now unobtainable to all but the lowest paid). They also, in large part, benefited from a time when their parents didn't live as long and therefore weren't in need of such long term care. Yes, there will ALWAYS be those in need who aren't able to provide for themselves but what we need in this Country is a root and branch change in philosophy.
Largely, ambition and aspiration have become dirty words and there is also now a massive level of expectation that money will pass down from one generation to the next - whilst it is lovely to receive an inheritance (I guess!), any money that someone 'saves' throughout their live should be spent on their own personal care. If there is any money left at the end fair enough. If people have had the where-with-all to provide for later life and have failed to do so, I don't see why tax payers should have to foot the bill. Many people have simply not put enough by to look after themselves in later life. Why should a smaller number of younger tax payers now (many of whom cannot buy their own houses) fund the care of a generation that have had opportunities that many now can only dream of? Most of the people I'm talking about didn't fight in either of the Wars (OK some did National Service and I wish we'd bring that back in some form).
What is wrong with the current system? Probably the biggest issue currently is cost. How in God's name it can cost £85k per annum to put someone in care is beyond me. This is the simple reason why my MiL lives in the garden, well not literally!!
I detest the woman and always have - she is categorically the most stubborn, selfish and miserable cow that ever walked this planet. For 3 months after Christmas she was particularly unwell and much of her day to day needs (including administering IV drugs and clearing up unmentionables) was down to me. Her health has now improved but efforts that we made to bring in a daily carer ( to help get her up and dressed) have been shunned (by her) to the point that the carers have ceased coming. This puts all the responsibility back on my wife and I. I have now backed off and only shop for her and cook her lunch daily.
She moved here 4 years ago on the assumption that she didn't have long left! How fking wrong can you be!!!! We sold her house when she moved here used 90% of the proceeds to build her an annex. This has limited financial value as we cannot sell it away from the house (nor would we want to) but if she had been in a care home for 4 years, she would now be 2 years in arrears effectively.
I frequently wish that she was elsewhere but that wouldn't help my Wife who would still need to see her, if not daily, at least 2-3 times a week. The emotional blackmail would be hideous - she's already ungrateful enough!
Sorry - not sure the 'rant' element of that answers any questions but I feel better anyway