01 February 2008
Scotland's groundbreaking policy of providing free personal and nursing care for elderly people was introduced without sufficient clarity about whether it was a universal entitlement or one dependent on councils' resources, Audit Scotland has warned.
The spending watchdog also warned of a growing shortfall in funding for the policy, which was implemented from 2002 and set Scotland apart from England, where personal care is means-tested.
'The initial cost estimates were difficult to make because of the limited information available at that time, particularly regarding personal care delivered at home,' Audit Scotland's report, published on February 1, says. Longer-term cost projections have not been updated since 2001, it adds.
In 23 councils, eligibility criteria had been drawn up to manage demand for services. But there was 'significant variation' in how these were applied.
The audit body estimated the total cost of free personal care as about £1.8bn between 2002/03 and 2005/06, 'of which around £1.2bn would have been spent by councils irrespective of the policy'. But the additional costs were higher than the funding provided by the Scottish Government, leading to a shortfall of up to £63m by 2005/06.
Ronnie McColl, health and wellbeing spokesman for the Convention of Scottish Local Authorities, said the report confirmed councils' concerns about the legislation and said they had been working with the Scottish government to resolve these.
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