Partnership welcomes the announcement that there will be a cap on the amount people will have to contribute towards their personal care, but cautions that there must be greater clarity about what the cap will cover and what it will not.
• In 2009 only 7,000 self-funders in residential care received appropriate financial advice (out of 53,000)[1]
• It is estimated 25% of self-funders deplete their funds prematurely and fall back on the state[2]
• The number of self-funders is growing
♦ 43% have to pay all their care costs
♦ 57% have to pay for all their care costs or a top up
♦ 55% in the South East have to pay all their care costs, 53% in the South West and 50% in the East[3]
• Accordingly it is vital that self funders have access to appropriate financial advice – this should be at CF8 level*, or an equivalent level to be determined by the Secretary of State.
Partnership welcomes the Government announcement which alongside the draft Bill is another important step forward in its agenda to reform social care.
However, Partnership cautions that there must be greater clarity about what the cap will cover and what it will not. People must understand that the cap will only apply to the “personal social care” element, which is typically a third of all residential care costs, and it will be subject to both eligibility criteria and the prevailing local authority rate. The cap will not cover general living expenses (estimated at roughly £7,000-£10,000 a year), or any “hotel” costs above the rate paid for by their local authority.
With a growing number of people having to pay for all or some of their own social care needs (57%) it is essential that people get relevant information and advice, and as part of this it must include specialist care fees advice. This will not only allow people to make better informed choices about how best to pay for their care needs, but it will also help to prevent people from depleting all their assets prematurely and falling back on the state. LGiU estimates that 25% of self funders deplete their assets prematurely and fall back on the state.
The introduction of a cap, along with greater awareness of how social care is funded may also encourage the financial sector to look at developing more products to help people to pay for their care needs.
Chris Horlick, Managing Director of Care at Partnership said “We welcome the Government’s announcement which taken in the round alongside the reforms proposed in the draft Bill present another important step in reforming adult social care.
However, it is essential that people, particularly self funders who form the majority of people in the adult social care system, are aware that it is not a complete cap on all care costs and therefore get specialist care fees advice at the earliest opportunity in order to find appropriate solutions to pay for their care costs.”
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