Select committee: Housing, Communities and Local Government Committee
Conclusion 7
Second Report - Long-term funding of adult social care
Published 4 Aug 2022
Paragraph 41
Addressed to Ministry of Housing, Communities and Local Government
Housing, Communities and Local Government Committee Long-term funding of adult social care All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
We do not accept the Government’s position that care providers should not be compensated for employer National Insurance Contributions in relation to the Health and Social Care Levy simply because they are, on the whole, private businesses. We heard again and again that there should be parity of esteem between the NHS and social care. Compensating the “health” component of the “Health and Social Care Levy” because it is a public sector employer while not doing so for the “social care” component only serves to reinforce the strongly felt notion that social care is the poor relation of the NHS. It also introduces unfairness between public and private care providers. The additional cost to private providers will make it harder for them to increase wages. This may lead to more care workers leaving the sector, many for jobs in the NHS. Furthermore, it is a perverse logic that care providers should have to undergo further financial strain by paying a tax that is supposed to be helping to relieve their financial strain. Since the Health and Social Care Levy is supposed to benefit both health and social care, private care providers should be compensated for employer National Insurance Contributions to the Health and Social Care Levy.
From: Housing, Communities and Local Government Committee, Second Report - Long-term funding of adult social care (HC 19), paragraph 41, 4 August 2022
Government response
The government responded to the whole report on 15 June 2023 (deadline 4 October 2022).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government says it remains "fully committed" to the 10-year vision for adult social care and points to up to £7.5 billion of additional funding over two years, while declining some of the Committee's specific recommendations.
- On funding, it cites the Autumn Statement's "up to £7.5 billion" of additional funding over two years for adult social care and discharge, with up to £2.8 billion in 2023-24 and up to £4.7 billion in 2024-25.
- It says it "agree[s]" that market shaping should include a dedicated focus on outcomes-based commissioning, and it is investing in local authority commissioning capability.
- It declines to introduce statutory housing plan requirements ("We do not intend to introduce statutory requirements at this time") and has "no plans" for a review of carer's assessments or to lower visa salary thresholds.
- On a multi-year settlement, it says it "will aim to provide" one "wherever possible"; it will not proceed with the Review of Relative Needs and Resources during this Spending Review.