The Dilnot report recently created a lot of media attention when it published its recommendations on the funding of social care and support in England. An independent commission set up last July by the Government was asked to recommend a fair and sustainable funding system for adult social care in England.
Why is a review of funding needed?
The number of people aged over 85 has risen by two thirds since 2004. People are now living longer often without the correct level of support in place.
People are also failing to make adequate provision to pay for their care. A survey for the housing and care charity, Anchor, has found that only 6% of those people questioned were saving for old-age care. Yet only 8% would willingly sell their home to fund this care - 44% thought the Government should pay the whole cost, but only 14% would be happy to pay higher taxes to fund this.
A summary of the Dilnot Report recommendations:
- That the Government sets a cap of between £25,000 to £50,000 (£35,000 suggested) on an individual’s lifetime contribution towards the cost of their care with the Government meeting any care costs over and above this cap;
- Contribution of a further £7,000 - £10,000 a year towards living costs such as food, heating and accommodation;
- Increase in the means-tested upper limit above which people are liable for their full care from £23,250 to £100,000;
- Those who enter adulthood with care and support needs should be eligible for free State support immediately rather than be subjected to a means test.
How will the Government foot the bill?
Based on a cap of £35,000, the Commission estimates these proposals will cost the State an additional £1.7billion a year.
Although the Dilnot Report makes no recommendations there is speculation that either certain areas of Government spending will need to looked at or a specific tax increase will be introduced on those in retirement as well as those still working.
Will the Government accept the recommendations? Watch this space!
For further advice contact Emma Waters on 01245 453833 or email emma.waters@birkettlong.co.uk
