Source · Select Committees · Health and Social Care Committee
Recommendation 20
20
Paragraph: 104
We believe that the starting point for the social care funding increase must be an...
Conclusion
We believe that the starting point for the social care funding increase must be an additional £7bn per year by 2023–24 to cover demographic changes, uplift staff pay in line with the National Minimum Wage and to protect people who face catastrophic social care costs. This represents a 34% increase from the 2023–24 £20.4bn adult social care baseline projected budget at today’s prices. In this report we have not examined how such an increase could be funded but we recognise the challenges involved and the need for innovative thinking to address them.
Paragraph Reference:
104
Government Response
Acknowledged
HM Government
Acknowledged
Details of the level of funding provided to the social care system during the COVID-19 pandemic and at the 2020 Spending Review can be found in the section; Preface: Adult Social Care Funding. 8.1 We are acutely aware of the long-term challenges to the social care system in England. With 1.5 million more over 75s expected in the next 10 years, and a growing population of under 65s with care needs, a social care system that works for everyone has never been more important. Delivering a sustainable care system that is fit for the future, in which people are treated with dignity and respect, is one of the greatest ongoing challenges Government faces. 8.2 We want to empower recipients of care by supporting people to live independently in their own homes and communities for as long as possible. We also want to improve the public’s understanding of the social care system, enabling them to effectively plan for their care and understand their financial responsibilities. 8.3 We welcome the reports from the Lords Committee and the joint Health and Social Care Committee and Housing, Communities and Local Government Committee, which have been important in informing in informing our policy development. In developing options for future reform, we are mindful of the impact of both the unprecedented nature of the pandemic and the uncertainties it has created, as well as the expected demographic change in the social care population. Future reform is a complex area and a range of options are being considered. We are keen to continue to work with and listen to a wide range of stakeholders as plans for reform develop. 8.4 The current system of charging people for care does not adequately protect people and their families from potential catastrophic costs. It is estimated that one in ten people could face costs of over £100,000 for their care. There is currently no system for ‘risk pooling’ to address this risk of catastrophic costs falling on some individuals, especially those with dementia. Reforming how people are charged for their care would protect more of their assets, helping them to pass on their hard-earned savings. The Prime Minister has been clear that nobody needing care should be forced to sell their home to pay for it. 8.5 The work done by the Commission on Funding of Care and Support in 2011 was influential in the Department’s development of the Care Act 2014. This is in addition to the range of approaches suggested by external reports, demonstrating how complex an area reform is. 8.6 However, our current priority for adult social care is for everyone who relies on care to get the care they need throughout the COVID-19 pandemic. Given the pandemic and the uncertainties it creates, the one-year 2020 Spending Review will be used to stabilize the adult social care market, during and immediately after the COVID-19 pandemic. This settlement will support councils to maintain care services while keeping up with rising demand and recovering from the impact of COVID-19. As set out in the 2020 Spending Review, the government is committed to sustainable improvement of the adult social care system and will bring forward proposals in 2021.