Lords urge action on social care funding

02 June 2020 Seamus Ward

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The Lords Economic Affairs Committee insisted Mr Sunak (pictured) must set a date for the publication of a white paper on reforming social care funding, which it said should be in this session of Parliament. It has asked for a reply by 5 June.Rishi Sunak HM Treasury

A letter to the chancellor following his recent appearance before the committee said: ‘The urgent and tragic circumstances affecting the sector have magnified the differences between the NHS and social care. Moreover, they demonstrate that there can be no justification for any more delay to putting social care on a sustainable footing; both for those who rely on it and for those who serve it.’

The committee said its July 2019 report, Social care funding: time to end a national scandal, found that while demand for care services was increasing, funding had declined in real terms. Greater spending would allow for investment in staff and the development of a much-needed career structure that reflects the workforce skills and importance.

The report recommended a package of measures that would cost £7bn a year, based on an estimate by the King’s Fund and Health Foundation. The Lords said this should be raised largely from general taxation. Personal care, including washing, dressing and cooking, would be free – those in care homes would have to pay for accommodation and other, less critical services, such as help with shopping. The Lords said this was fair and would bring the sector into closer alignment with the NHS.

The model would cost £2bn a year more than the ‘cap and floor’ proposal in the 2017 Conservative party election manifesto. The cap is a lifetime ceiling on an individual’s care contributions, coupled with a higher threshold for means testing. The Health Foundation had told the committee this would cost £5bn a year.

The report added that though potentially more expensive than some options, free personal care could reduce demand for residential care and healthcare in the long term by encouraging people to seek help at home earlier.