Social careMay 11 2021

'We need action': Industry responds to social care plans

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'We need action': Industry responds to social care plans

As part of the Queen’s Speech, delivered today (May 11), the government said it is committed to improving the adult social care system and would “bring forward proposals in 2021”.

It added that the Health and Care Bill, also included in the Queen’s Speech, would “include provisions to improve the oversight of how social care is commissioned and delivered”.

The government stated: “The Adult Social Care sector has never been under as much pressure as in the last year. Throughout the pandemic we have been working to ensure all recipients of care receive the support they need. We know there is more work to do so that everyone receives high-quality, joined-up care.”

But the industry is disappointed yet again that a clear timetable and more concrete details on what the reform could look like have not been given. 

Mike Padgham, chairman of the Independent Care Group, said: “If the government is so committed to reforming social care, as the Prime Minister and other ministers keep telling us they are then we need to see it happen. 

“We need some accountability and the government to be held to account if it fails to deliver.

He added: “We have had too many promises and pledges, we now need to see action.

“We need the government to set out what it plans to do and set strict deadlines as to when it is going to do it, so that it is accountable to the hundreds of thousands of people who are being failed by this government today and every day.”

Social care reform has been on the list of things to fix for a while, with successive governments promising to address this issue and then subsequently not following through with their promises.

The prime minister has promised repeatedly to 'fix' the social care system and the Conservative manifesto promised to address the issue. In a speech in late June he said the government was ‘finalising’ plans to solve the issue.

Despite this, social care funding was once again absent in this year’s March Budget.

Others have said the lack of detail came as no surprise given that there have been so many “false starts” with social care reform.

Peter Hamilton, head of market engagement at Zurich, said: “Commitment is needed to introduce measures that will ensure clarity for people around the level of support they can expect to receive from the state, as well as what they will be expected to contribute themselves. And of course with that comes the need for serious additional funding.  

“Without this, we will continue to see inconsistency and unfairness as people grapple with a complex system, unable to make any sort of financial provision or plan for their own futures or those of loved ones.”

Funding questions

Steven Cameron has said it’s important that the government comes up with a stable and sustainable way of funding social care as it is often costly, but the Queen’s Speech has offered no clarity on this.

Cameron said the government needs to gain public and cross-party support for a deal to share costs between the state and individuals, based on their wealth, which also needs to be fair across wealth bands and generations.

He said: “The government’s share needs to be backed up by sustainable and adequate funding, accepting this may involve raising taxes either on income or wealth. This is further complicated by the government’s 2019 election manifesto ‘triple tax lock’ commitment not to raise rates of income tax, national insurance or VAT.

“It could explore options concerning wealth taxes, or extend National Insurance to earned income above state pension age, which is currently exempt. Another option  would be introducing a completely new tax, earmarked specifically for social care, possibly levied on those above a certain age.”

Whatever solution the government decides on, people will still need to think about saving for their own care as whatever the government offers is unlikely to cover all costs, said Rachael Griffin, tax and financial planning expert at Quilter.

She said: “Personal provision for social care will make up the vast majority of how someone pays for the care they need, and it certainly won’t be a small amount so people should think carefully about not only saving for retirement but also for social care.”

The industry has previously come up with a number of suggestions, including a Care Isa and Care pension, but these were not picked up by the government at the time.

amy.austin@ft.com

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