With so many changes taking place in social care, there’s a need to review how funding is distributed across local authorities. Research has been commissioned, and up to 50 councils will take part in the study
Since the last review of the distribution of social care funding in 2005, the delivery of care has altered significantly following a range of legislative, organisational and demographic changes.
Services now reflect greater use of personalisation, reablement, telecare, intensive home care and the transfer of responsibilities from primary care trusts for some people with learning difficulties. There will be further reform across all councils from 2015, when people who cannot afford reasonable residential care charges without selling their home will be able to defer the fees.
Meanwhile, the government has committed to taking forward the recommendations of the Dilnot Commission and will, subject to legislation, from April 2017, introduce a cap on reasonable care costs and new financial protection for those with modest wealth. The government has provided details of how the costs will be funded during the next Parliament.
With this twin context of changes in means of service delivery and funding reform, the Department of Health has commissioned research to be undertaken by LG Futures and the Personal Social Services Research Unit at the University of Kent/London School of Economics and Political Science.
The new funding formula will be used to inform distribution for:
- Department of Health specific grants and NHS funding for social care;
- The introduction of the universal deferred payments scheme from 2015; and
- The introduction of a cap on reasonable care costs and additional financial protection for people in residential care from 2017.
They would also be available for the government to consider as part of the next reset of the business rates retention scheme, currently planned for some time after 2019/20.
Our research requires extensive data collection across local authorities to investigate how the need for care can vary. There will also be a particular research focus on the needs and costs associated with self-funders – those individuals who currently fund their own care as their assets are in excess of current upper thresholds.
The research team is currently developing its methodology and is engaging with key national representative groups and local authorities to help shape the approach and refine data collection processes. We’ve already contacted all local authorities with responsibility for adult social care in England, providing an overview of the project and asking them to support our data collection programme.
In the next few weeks, a pilot study with a smaller number of authorities will seek feedback on draft data requirements, in addition to exploring data potentially held by authorities on self-funders. We will make use of nationally available data where possible, such as the statistics produced by the Information Centre for Health and Social Care, so we minimise the burden on local authorities. However, we need data at a more localised level than is available from national sources
We’re looking for up to 50 local authorities to participate in the main study, which will take place in the summer and autumn, taking into account different types of authority and different characteristics. We need a cross-section of authorities representing rural and urban areas, small and large authorities and with variations in deprivation and economic indicators.
The data collection relating to self-funders presents a significant challenge – many of these individuals have only limited, if any, contact with local authorities as they are not eligible for funding support. Our data collection may therefore extend to a survey of residential care homes to support this element of the research.
The more authorities and stakeholders that we can involve in the research, the better the chances of developing a robust and representative formula. We have to take into account not just the needs for social care, but how the funding reform will impact on the financial liabilities of each local authority.
Local authorities that participate in the research can ensure that their particular circumstances are included in the analysis and find out directly how the funding formula is being developed, and its likely impact on them.
Jude Ranasinghe is a director of LG Futures. To find out more, to take part in the research project or to register for webinars on the methodology contact him on [email protected] or 01908 424387
