Tag Archives: elderly

Free elderly care tax rises warning

Ever since Gordon Brown announced plans to give free personal care to the elderly late last year, the policy has faced a sustained barrage of criticism. And it isn’t showing any signs of stopping.

While in theory, free personal care for the elderly in their own home sounds like a great idea, the practicalities of it could well outweigh the benefits, according to leading figures in social care.

One of the major bugbears is the cost. The government reckons it’ll cost £670 million, but nobody else seems to; the vast majority of commentators think they have significantly underestimated.

Where the money will come from is another bone of contention. There is no new government money for this, it will come from a variety of sources; the majority, £420 million, will come from existing Department of Health budgets, while local authorities will provide the remaining £250 million from ‘efficiency savings.’

‘Efficiency savings’ is a woolly phrase at the best of times, but it is particularly worrying for council leaders because they are already trying to find millions of savings in anticipation of swingeing budget cuts in 2011.

Now some, including the heads of Hampshire and Essex councils, are publicly warning that to pay for the policy could mean council tax rises of a couple percent – never popular among the public, even less so when there is a recession on – or cuts to frontline services.

But the objections are not solely for financial reasons. A senior figure within social care told me that the policy could create perverse incentives for people to not go into residential care; if they went into a care home, if they have assets worth in excess of £23,000 they would have to pay for their place, whereas in their own home, care is free.

As a result, older people could stay in their own home for longer than it is really safe for them to do so, and could also become isolated, if they are housebound. Is that really a better option than residential care, where they have round-the-clock care, plus the company of the staff and other residents?

However, this unpopular policy may never make it into force. Lord Lipsey, a Labour peer – and vocal critic of the bill – believes that it has no chance of coming into force before the election. What happens after will depend on which party wins.

There is a feeling among some – including, perhaps inevitably, Conservative health spokesman Andrew Landsley – that the policy was announced to gain political capital.

If what its critics say will happen does, the bill could well end up backfiring on Labour, as well as the social care industry. For everyone’s sake, let’s hope they are wrong.

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Filed under adult social care, Social care funding

Critics condemn planned cuts to fund free social care plan

Another day, another political row about the government’s free social care at home for the elderly plan. Today, it’s how the plan is being funded.

While the government has been criticised for thus far being oblique about where the money will come from to fund the plan – they estimate it will cost £670 million per year, but others think it will be much higher – now they are starting to say where money will come from, they are garnering more criticism.

Health minister Andy Burnham, as reported in today’s Times on the eve of the publication of the Social Care Bill, says that “£60 million would be diverted from the health service’s research and development budget and £50 million from public health promotions.”

Inevitably, scientists have warned against cutting research budgets. The current research budget is more than £1 billion per year, so that cut is hardly a drop in the ocean.

Research is key for the future of healthcare and should be considered an investment – having drugs that cure is cheaper than the cost of lengthy treatment – and cuts should be avoided if possible.

However, the money will have to come from somewhere – if the Bill actually gets passed before the election, which is not guaranteed – and tough decisions will have to be made about which budgets get cut. It’s what we have government for; they make the hard decisions so we don’t have to.

It could be that funds are found from elsewhere. For example, a productivity drive in the NHS is expected to make up to £20 billion in efficiency savings in the next 4 years, which would more than pay for the Bill.

But wherever cuts come from to fund the free personal care plan, someone is going to be left unhappy. Well, almost; nobody has criticised the plan to save £60 million by cutting down on management consultants. Strange, that.

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Filed under adult social care, Social care funding