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Ministers consider shelving personal liability cap for long-term care costs Ministers consider shelving personal liability cap for long-term care costs
(35 minutes later)
Ministers are considering shelving the promised introduction of a cap on personal liability for the cost of long-term care, after council leaders asked for the funding set aside for it to be used instead to ease the crisis in day-to-day services for elderly and disabled people.Ministers are considering shelving the promised introduction of a cap on personal liability for the cost of long-term care, after council leaders asked for the funding set aside for it to be used instead to ease the crisis in day-to-day services for elderly and disabled people.
In a letter to the health secretary, Jeremy Hunt, and the chancellor, George Osborne, a copy of which has been seen by the Guardian, the newly Conservative-led Local Government Association says: “It would be deeply damaging to press ahead with a costly and ambitious reform programme if the very foundations of the system we are reforming cannot be sustained.”In a letter to the health secretary, Jeremy Hunt, and the chancellor, George Osborne, a copy of which has been seen by the Guardian, the newly Conservative-led Local Government Association says: “It would be deeply damaging to press ahead with a costly and ambitious reform programme if the very foundations of the system we are reforming cannot be sustained.”
Senior figures in the social care sector say the idea of “pausing” the cost cap, due to be brought in next April, is being discussed urgently in Whitehall. A decision is expected before parliament rises for the summer in a fortnight.Senior figures in the social care sector say the idea of “pausing” the cost cap, due to be brought in next April, is being discussed urgently in Whitehall. A decision is expected before parliament rises for the summer in a fortnight.
Delaying the cap will be very tempting for ministers, enabling them to inject up to £2bn extra into social care in England over the remaining years of their austerity programme. But it would involve breaking a clear Tory manifesto commitment at the recent general election.Delaying the cap will be very tempting for ministers, enabling them to inject up to £2bn extra into social care in England over the remaining years of their austerity programme. But it would involve breaking a clear Tory manifesto commitment at the recent general election.
The manifesto stated: “We will cap charges for residential social care from April 2016 … so that no one has to sell their home. For the first time individual liabilities will be limited, giving everyone the peace of mind that they will receive the care they need and they will be protected from unlimited costs if they develop very serious care needs such as dementia.”The manifesto stated: “We will cap charges for residential social care from April 2016 … so that no one has to sell their home. For the first time individual liabilities will be limited, giving everyone the peace of mind that they will receive the care they need and they will be protected from unlimited costs if they develop very serious care needs such as dementia.”
The cap on liability for care costs, set at £72,000 for people above state pension age, is due to be introduced next year under the Care Act, following recommendations of the Dilnot commission in 2011.The cap on liability for care costs, set at £72,000 for people above state pension age, is due to be introduced next year under the Care Act, following recommendations of the Dilnot commission in 2011.
In addition to this, the level of personal assets at which people will be eligible for state help with residential care costs, irrespective of the cap, is due to rise next April from the current £23,250 to £118,000. An estimated 35,000 people are due to benefit immediately. Care home residents will, however, remain liable for board-and-lodging costs set notionally at £12,000.In addition to this, the level of personal assets at which people will be eligible for state help with residential care costs, irrespective of the cap, is due to rise next April from the current £23,250 to £118,000. An estimated 35,000 people are due to benefit immediately. Care home residents will, however, remain liable for board-and-lodging costs set notionally at £12,000.
The intervention by council leaders comes in response to what they say is a social care funding gap in England worsening by £700m a year and set to be at least £4.3bn by 2020.The intervention by council leaders comes in response to what they say is a social care funding gap in England worsening by £700m a year and set to be at least £4.3bn by 2020.
As many as 500,000 people who would have been eligible for state help with washing, dressing and meals in 2009 are not receiving any support today. According to charity Age UK, lack of such support in the community means that numbers of elderly and disabled people stuck in hospital is rising 19% a year.As many as 500,000 people who would have been eligible for state help with washing, dressing and meals in 2009 are not receiving any support today. According to charity Age UK, lack of such support in the community means that numbers of elderly and disabled people stuck in hospital is rising 19% a year.
In the letter to ministers, sent on 1 July, the LGA stresses that it still backs the idea of a cap on care costs, but says that “frank assessments of prioritisation” are needed.In the letter to ministers, sent on 1 July, the LGA stresses that it still backs the idea of a cap on care costs, but says that “frank assessments of prioritisation” are needed.
“This means considering postponing new costly initiatives – even those we fully support – if that is the only way we can secure sufficient funding for mainstream social care services.”“This means considering postponing new costly initiatives – even those we fully support – if that is the only way we can secure sufficient funding for mainstream social care services.”
The association is not calling for indefinite suspension of the funding changes, the letter says. “However, we do believe that the reforms can wait and that addressing the more pressing matter of funding for the system itself shouild be our shared priority,” it says. The association is not calling for indefinite suspension of the funding changes, the letter says. “However, we do believe that the reforms can wait and that addressing the more pressing matter of funding for the system itself should be our shared priority,” it says.
The letter is signed by Izzi Seccombe, chair of the LGA’s community wellbeing board and Conservative leader of Warwickshire county council, and is understood to have the full approval of the LGA’s new majority Tory leader, Gary Porter, who was installed last week following May’s local election results.The letter is signed by Izzi Seccombe, chair of the LGA’s community wellbeing board and Conservative leader of Warwickshire county council, and is understood to have the full approval of the LGA’s new majority Tory leader, Gary Porter, who was installed last week following May’s local election results.
On the basis of the government’s cost estimates, postponing next year’s planned reforms would save £590m in 2016-17 and a total of almost £2bn if implementation was deferred for three years until 2019 when the austerity programme is due to end. Annual costs of the changes are set to rise to £2.3bn by 2025-26.On the basis of the government’s cost estimates, postponing next year’s planned reforms would save £590m in 2016-17 and a total of almost £2bn if implementation was deferred for three years until 2019 when the austerity programme is due to end. Annual costs of the changes are set to rise to £2.3bn by 2025-26.
The Welsh government has already postponed its version of the changes, which were also due to take effect in 2016, because of “uncertainty as to what reform may be introduced in England”.The Welsh government has already postponed its version of the changes, which were also due to take effect in 2016, because of “uncertainty as to what reform may be introduced in England”.
A one-year postponement in England would bring the changes in line with the 2017 abolition of inheritance tax on homes worth less than £1m, expected to be announced by Osborne in this week’s budget. It would also reinstate the original timetable for introduction of the care costs cap, before a decision is taken to bring it forward to 2016.A one-year postponement in England would bring the changes in line with the 2017 abolition of inheritance tax on homes worth less than £1m, expected to be announced by Osborne in this week’s budget. It would also reinstate the original timetable for introduction of the care costs cap, before a decision is taken to bring it forward to 2016.
Significantly, the health department is not rejecting the suggestion of a delay. A spokesperson confirmed that the LGA’s letter had been received and said there would be a response “in due course”.Significantly, the health department is not rejecting the suggestion of a delay. A spokesperson confirmed that the LGA’s letter had been received and said there would be a response “in due course”.
Opinion in the social care sector is swinging behind postponement. Ray James, president of the Association of Directors of Adult Social Services, said: “Whilst the Care Act is rightly welcomed across the sector, if asked to choose between implementing the funding reforms right now or having the money to directly fund growing demand for social care, every right-minded person would prioritise a fair and sustainable funding settlement to meet the true cost of providing safe, good quality care.”Opinion in the social care sector is swinging behind postponement. Ray James, president of the Association of Directors of Adult Social Services, said: “Whilst the Care Act is rightly welcomed across the sector, if asked to choose between implementing the funding reforms right now or having the money to directly fund growing demand for social care, every right-minded person would prioritise a fair and sustainable funding settlement to meet the true cost of providing safe, good quality care.”
Sue Brown, deputy chair of the Care and Support Alliance, representing 80 leading care charities, has blogged that the crisis in social care is so acute that the added demands on councils of introducing the cap “would be dangerous”.Sue Brown, deputy chair of the Care and Support Alliance, representing 80 leading care charities, has blogged that the crisis in social care is so acute that the added demands on councils of introducing the cap “would be dangerous”.