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Means-testing for care 'may go' Means-testing for care 'may go'
(10 minutes later)
The government has signalled that it may scrap means-testing for long term care of elderly and disabled people in England.The government has signalled that it may scrap means-testing for long term care of elderly and disabled people in England.
Ministers are thought to prefer a system coupling universal entitlement with a top-up co-payment.Ministers are thought to prefer a system coupling universal entitlement with a top-up co-payment.
Proposals for a Green Paper to look at the issue were contained in the Comprehensive Spending Review.Proposals for a Green Paper to look at the issue were contained in the Comprehensive Spending Review.
The move has been hailed as an "historic move" by the independent think tank the King's Fund.The move has been hailed as an "historic move" by the independent think tank the King's Fund.
The move represents a bold first step at addressing one of the greatest social challenges facing the government Niall DicksonKing's FundThe move represents a bold first step at addressing one of the greatest social challenges facing the government Niall DicksonKing's Fund
At present, nursing care and care-home costs are means-tested against the value of a person's assets, including their home.At present, nursing care and care-home costs are means-tested against the value of a person's assets, including their home.
Only people with assets up to £12,000 have their care paid for by the state and many elderly people currently have to sell their homes to pay for their care.Only people with assets up to £12,000 have their care paid for by the state and many elderly people currently have to sell their homes to pay for their care.
The Royal Commission on Long-Term Care, which reported in 1999, called for all personal social care to be made free to the patient - but little political action followed.The Royal Commission on Long-Term Care, which reported in 1999, called for all personal social care to be made free to the patient - but little political action followed.
Niall Dickson, King's Fund Chief Executive, said the system was much despised, and had caused distress and misery to older people and their families.Niall Dickson, King's Fund Chief Executive, said the system was much despised, and had caused distress and misery to older people and their families.
He labelled it unsustainable, overly-complex and unfair.He labelled it unsustainable, overly-complex and unfair.
He said: "This is an historic move and is to be welcomed and commended.He said: "This is an historic move and is to be welcomed and commended.
"The move represents a bold first step at addressing one of the greatest social challenges facing the government."The move represents a bold first step at addressing one of the greatest social challenges facing the government.
"The government must now seize this opportunity to achieve a political consensus on how we fund long term care and deliver a fairer system for future generations.""The government must now seize this opportunity to achieve a political consensus on how we fund long term care and deliver a fairer system for future generations."
More funds neededMore funds needed
However, Mr Dickson said the level of funds given to social care over the next three years was disappointing.However, Mr Dickson said the level of funds given to social care over the next three years was disappointing.
The social care budget, which helps councils pay for services such as home helps which help people stay in their own homes, will rise by just £190m to £1.4bn in 2010. The social care budget, which helps councils pay for services such as home helps which help people stay in their own homes, will rise by just £190m to £1.5bn in 2010.
He warned that the social care system was already struggling, with local authorities raising their eligibility criteria and only focusing on those people with the most severe needs.He warned that the social care system was already struggling, with local authorities raising their eligibility criteria and only focusing on those people with the most severe needs.
The announcement follows publication of a report by former bank chief Sir Derek Wanless into the future of social care funding.The announcement follows publication of a report by former bank chief Sir Derek Wanless into the future of social care funding.
Sir Derek called for sharp increases in funding to meet the demand for high quality care over the next two decades, and for the means-tested funding system to be scrapped.Sir Derek called for sharp increases in funding to meet the demand for high quality care over the next two decades, and for the means-tested funding system to be scrapped.
The report found that if the system remains as it is, its costs will rise from £10.1bn in 2002 to £24bn by 2026 as a result of demographic changes alone.The report found that if the system remains as it is, its costs will rise from £10.1bn in 2002 to £24bn by 2026 as a result of demographic changes alone.
Many charities have also warned that the current system is ripe for reform.Many charities have also warned that the current system is ripe for reform.
Mr Dickson said: "Our failure to support frail and vulnerable older people has been one of the unrecognised scandals of our time.Mr Dickson said: "Our failure to support frail and vulnerable older people has been one of the unrecognised scandals of our time.
"There are more very old people than ever and yet fewer are receiving the social care support they need.""There are more very old people than ever and yet fewer are receiving the social care support they need."
Sir Simon Milton, chairman of the Local Government Association, said councils had been short-changed by the spending review, which he said had provided the worst settlement for local government in a decade.
He said: "There remains a black hole in funding for the care of the elderly."