For people anxious for signs of radical ideas and renewed energy from the government on the domestic policy front, the front page of The Observer on 14 June provided some hope.

The newspaper signalled that the government is considering using inheritance as one of a number of ways of paying for the rising costs of long-term care. The options will be unveiled shortly in a long-awaited green paper.

The care green paper must be radical, reforming and practical in equal measure. And it will require bold and ambitious leadership to make a real difference for the growing number of older people, their families and carers facing the care crisis.

Time is running out for radical reform of the care system. Care homes face closure while fewer older people are getting the help they need in their home. Britain’s ageing population is experiencing a care crisis that is set to get worse in the face of public spending cuts. More and more families are picking up the pieces and caring for older relatives.

Now is the time for a major rethink to create a care system that is fit for the future. The biggest conundrum of them all wasn’t there when the government embarked on developing the green paper: how can we reconcile tightening public finances with growing demands for better care for our ageing population?

Ministers agree that this is a long-term challenge on a par with climate change and global security. But until last weekend there have been few signs that the green paper will contain much in the way of radical proposals. 

But the public also recognises that change is required, that change won’t be cheap, and that change must involve older people, their families and carers.

Clearly the green paper must set out a vision of what kind of care system we can all expect when we get older. This must build on the drive to make care more personal and flexible but also make it fairer, more consistent and transparent wherever you live. 

Beyond that there are three key ingredients for the green paper:

1) Radical funding solution: the care system is underfunded and the gap is growing as our population ages. A fairer funding system needs to tackle the big gripe many have about older people losing their home to pay for a care home. Introducing a care duty as a percentage of inheritance tax would mean that care is paid for after death, that payment is linked to wealth, and that the home isn’t lost. It would also keep pace with an ageing population and changes in wealth. 

2) Reforming care provision: we need better quality care that is tailored to individuals’ needs. Building on the Putting People First transformation programme, we need much better use of existing public spending to deliver real improvements in flexible care. Health, care and housing must work much closer together – funding from health for example must be more focused on prevention in people’s own homes and local neighbourhoods; telecare must be widely available to help support people in their own homes and prevent unnecessary admission to hospital or residential care; and all local authorities must adopt a strategy for their ageing population which uses their whole budget to support their local communities and give older people more choice and control.

3) Practical support: most care in this country is provided by family carers. We need better support for the growing army of carers – to help them stay in work, to support them and make it easier to care, and to help them make the best use of their resources, for example through advice and information, as well as expert carers programmes. Again local authorities need to use all their resources to make life easier for carers, without whom the economy would collapse.