Councils warn on costs of social care changes

10 Mar 14
Adult social care reforms could be jeopardised by a lack of funding to implement the changes, local authorities warned today

The Local Government Association said successful introduction of the planned Care Bill changes, which include a cap on an individual’s lifetime care costs and better integration with the NHS, was at risk without money being provided to meet extra costs. 

Possible new costs for councils include the introduction of a national threshold for care based on ‘substantial' need, above the ‘critical’ level used by some. There is also a requirement to assess around 450,000 people currently paying for their social care so they can be included in council-run payment systems to meter contributions to the cap.

In a joint submission with the Association of Directors of Adult Social Services, the Care and Support Alliance of charities and the Society of Local Authority Chief Executives, the LGA called for the Bill to be changed to better assess costs.

Local care and support reform programme boards, which will implement the changes, should be required to tell ministers on an annual basis whether enough money was being made available, the groups said. This amendment, which has cross-party support from 12 MPs, would also compel the government to undertake a review every five years of the short-term and long-term costs of the national threshold.

Katie Hall, LGA community wellbeing board chair, said it would be a ‘tragedy’ if reforms were put at risk due to lack of funding. 

As local government faced cuts of 40% in the current parliament, any funding squeeze would result in difficult choices between implementing the Care Bill and progressing joint-working initiatives, she warned.

‘The Care Bill is a real opportunity to make the care system fit for the 21st century. We are calling for government to work with us to ensure that our shared ambition for a care system which meets the needs of Britain’s elderly is not compromised,’ Hall said.

‘We must prevent the cracks already evident in our starved adult social care system from becoming wider. Unless adult social care funding is put on a sustainable footing, social care services and the reforms will remain substantially underfunded and will suffer as a result.’

ADASS President Sandie Keene added that the financial situation for social care was bleak and getting bleaker. 

‘It really is crucial that the integrity of the fundamental changes envisioned in the Care Bill is not jeopardised by short change. The proposals we are making to the Bill will mean that extra transparency about the true costs of implementation will be built into the process from the very start.’ 

Dr Jo Farrar, Solace’s lead on health and social care, said the group shared the government’s ambition for a modern social care system that has wellbeing at its core. 

‘If our joint aspiration for world-class care is to be realised these reforms must be adequately funded,’ she added.

‘Those responsible for delivering the reforms on the ground need to be able to give an informed view about the funding required. This will give councils and their partners the additional confidence they need to really embrace this historic opportunity to transform our care system.’

Responding to the proposed changes to the bill, the Department of Health said it would fully fund the reforms until the end of the next parliament through inheritance tax and national insurance contributions.

A spokeswoman added: 'The current system doesn't work and is hugely unfair - people face losing almost everything they've worked hard for or being forced to sell their family home in a time of crisis to pay for the care they need. Our reforms will put an end to this and deliver sustainable changes that will help protect people for many years to come.

'Our £3.8bn Better Care Fund will allow local authorities and the NHS to invest in joined up services that prevent people from developing greater care needs in the first place.

'This includes putting the structures in place to make this happen. To support that we are providing an extra £335 million to cover the costs of bringing in our cap on care costs and our deferred payments scheme for people in residential care.'

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