LibDems back Dilnot proposals

20 Sep 11
The Liberal Democrats today called for the Dilnot proposals on care funding to be used as the basis for implementing 'long-term overdue reform of the social care system'.

By Richard Johnstone in Birmingham | 20 September 2011

The Liberal Democrats today called for the Dilnot proposals on care funding to be used as the basis for implementing ‘long-term overdue reform of the social care system’.

The annual conference in Birmingham was debating economist Andrew Dilnot’s recommendations, ahead of the government’s full response next year. Yesterday at a fringe event, care minister Paul Burstow confirmed to Public Finance that the Department of Health would issue a progress report in April.

Dilnot’s report, published in July, outlined plans for a £35,000 cap on individual contributions to their social care costs, beyond which care would be paid for by the state.

It also recommended that people should contribute a standard amount – between £7,000 and £10,000 a year – to cover general living costs in residential care, such as food and accommodation.

Chris Horlick, managing director of long-term care at insurance group Partnership, told the fringe meeting that this could still leave older people facing a similar level of cost as now. He said it was not fully understood that the cap proposed by Dilnot did not include these so-called hotel costs.

'Hotel costs are not covered in this system. Self-funders in residential care may still have to find up to 90% of their total costs for that,’ Horlick said.

Dilnot has costed his reforms for England at £1.7bn a year, but Horlick warned that a lack of provision on hotel costs could cost up to £1bn, leaving the care costs 'much the same'.

Burstow also said the government is to look at whether it needs powers to ensure the continuation of care in the event of the failure of a major provider. The minister told the fringe event that he found he had no such powers around the collapse of the Southern Cross group of care homes.

The minister told the conference this morning that ‘we must never leave a minister in a position with no means to intervene in law over care home collapse’, saying that it was ‘neglect’ by the past government not to put any measures in place.

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