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| Version 3 | Version 4 |
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| Review of long-term care funding | Review of long-term care funding |
| (30 minutes later) | |
| The government is to examine whether reforms are needed to the system of funding long-term care of elderly and disabled people in England. | The government is to examine whether reforms are needed to the system of funding long-term care of elderly and disabled people in England. |
| 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. |
| Many critics say the current system of means-testing is too complex, and often unfair on the most vulnerable people. | Many critics say the current system of means-testing is too complex, and often unfair on the most vulnerable people. |
| At present only people with assets up to £12,000 have their care paid for by the state. | At present only people with assets up to £12,000 have their care paid for by the state. |
| Many elderly people currently have to sell their homes to pay for their care. | Many elderly people currently have to sell their homes to pay for their care. |
| The move represents a bold first step at addressing one of the greatest social challenges facing the government Niall DicksonKing's Fund | The move represents a bold first step at addressing one of the greatest social challenges facing the government Niall DicksonKing's Fund |
| 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. |
| The Department of Health said the review "reflects the fact that society is changing and demands a new system". | |
| In a statement, it added: "The new system will have dignity and control at its heart for those who use services and their families." | |
| However, officials were quick to deny reports that ministers were already planning to scrap means-testing, and replace it with a system of universal entitlements coupled with top-up payments. | |
| Niall Dickson, King's Fund chief executive of the independent think-tank the King's Fund, said the means-testing system was much despised, and had caused distress and misery to older people and their families. | |
| He said: "The move represents a bold first step at addressing one of the greatest social challenges facing the government. | He said: "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 needed | More funds needed |
| 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. |
| We urgently need greater investment and a new settlement for social care Neil HuntAlzheimer's Society | We urgently need greater investment and a new settlement for social care Neil HuntAlzheimer's Society |
| 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. |
| Sir Derek recommended everyone in need of social care should be entitled to state funding for 66% of their care package, after which individuals' contributions will be matched by the state up to a defined limit. | |
| 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 added that the level of funds given to social care over the next three years was disappointing. | Mr Dickson added that 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 £1.5bn 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. |
| Mr Dickson 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. | Mr Dickson 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 said: "Our failure to support frail and vulnerable older people has been one of the unrecognised scandals of our time. | He 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." |
| Neil Hunt, chief executive of the Alzheimer's Society, welcomed the announcement of a Green Paper. | Neil Hunt, chief executive of the Alzheimer's Society, welcomed the announcement of a Green Paper. |
| But he said: "The current social care system is crumbling; we urgently need greater investment and a new settlement for social care." | But he said: "The current social care system is crumbling; we urgently need greater investment and a new settlement for social care." |
| 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. | 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." | He said: "There remains a black hole in funding for the care of the elderly." |