andrew dilnot: findings of the commission on funding of care and support
DESCRIPTION
Andrew Dilnot, Chair of the Commission on Funding of Care and Support, gives an overview of the Commission’s findings and sets out how a fair, affordable and sustainable funding system for social care in England can be delivered.TRANSCRIPT
Conclusions and recommendations of the Commission on Funding of Care and Support
Fairer care funding
Conclusions and recommendations of the Commission on Funding of Care and Support
The Commission’s remitThe Government asked the Commission to recommend:
– how best to meet the costs of care and support as a partnership between individuals and the state;
– how people could choose to protect their assets, especially their homes, against the cost of care;
– how, both now and in the future, public funding for the care and support system can be best used to meet care and support needs.
Setting the context
Conclusions and recommendations of the Commission on Funding of Care and Support
The number of older people is increasing
0%
20%
40%
60%
80%
100%
65-69 70-74 75-79 80-84 85+
Growth in the number of older people in England 2010-2030
5
Conclusions and recommendations of the Commission on Funding of Care and Support
Flexible societies are good at adaptingProportion of UK population aged 65 and over
0%
5%
10%
15%
20%
25%
1901 1921 1939 1961 1981 2001 2021
Conclusions and recommendations of the Commission on Funding of Care and Support
Social care is one element of state supportPublic spending on older people in England 2010/11
Social security benefits
Social care
NHS
£0bn
£50bn
£100bn
£150bn
7
Conclusions and recommendations of the Commission on Funding of Care and Support
Funding has not kept up with demandExpenditure and demand: older people’s social care (2009/10 prices)
Expenditure
Demand
£6.0bn
£6.5bn
£7.0bn
£7.5bn
£8.0bn
2005/06 2006/07 2007/08 2008/09 2009/10
8
Conclusions and recommendations of the Commission on Funding of Care and Support
Care costs are uncertain and can be very highExpected future lifetime cost of care for people aged 65 in 2009/10
£0k
£50k
£100k
£150k
£200k
£250k
£300k
0% 20% 40% 60% 80% 100%
Conclusions and recommendations of the Commission on Funding of Care and Support
Fear is the natural response to current system Maximum possible asset depletion for people in residential care
5% 25% Median 75% 95%
0%
20%
40%
60%
80%
100%
£0k £50k £100k £150k £200k £250k £300k £350k £400k £450k £500k
Assets on going into care
Max
imum
pos
sibl
e as
set d
eple
tion
Percentiles of housing wealth
£150k lifetimecost
£100k
£75k
10
Conclusions and recommendations of the Commission on Funding of Care and Support
A cap removes the risk of very high costsExpected lifetime costs for people going into care in 2010/11, by percentile
£0k
£50k
£100k
£150k
£200k
0% 20% 40% 60% 80% 100%
11
Conclusions and recommendations of the Commission on Funding of Care and Support
A cap removes the risk of very high costsExpected lifetime costs for people going into care in 2010/11, by percentile
£0k
£50k
£100k
£150k
£200k
0% 20% 40% 60% 80% 100%
Conclusions and recommendations of the Commission on Funding of Care and Support
And offers significant asset protection Maximum possible asset depletion for people with £150k residential care costs
5% 25% Median 75% 95%
0%
20%
40%
60%
80%
100%
£0k £50k £100k £150k £200k £250k £300k £350k £400k £450k £500k
Assets on going into care
Max
imum
pos
sibl
e as
set d
eple
tion
Percentiles of housing wealth
Current system
£35k cap
13
Conclusions and recommendations of the Commission on Funding of Care and Support
But we also need to reform the means testThe effect of extending the means test on the amount of support people receive
Currentsystem
0%
20%
40%
60%
80%
100%
£0k £25k £50k £75k £100k £125k
14
Conclusions and recommendations of the Commission on Funding of Care and Support
But we also need to reform the means testThe effect of extending the means test on the amount of support people receive
Reformed system
Currentsystem
0%
20%
40%
60%
80%
100%
£0k £25k £50k £75k £100k £125k
Conclusions and recommendations of the Commission on Funding of Care and Support
Extending the means test helps the poorestMaximum possible asset depletion for people with £150k residential care costs
5% 25% Median 75% 95%
0%
20%
40%
60%
80%
100%
£0k £50k £100k £150k £200k £250k £300k £350k £400k £450k £500k
Assets on going into care
Max
imum
pos
sibl
e as
set d
eple
tion
Percentiles of housing wealth
Current system
£35k cap
Conclusions and recommendations of the Commission on Funding of Care and Support
Extending the means test helps the poorestMaximum possible asset depletion for people with £150k residential care costs
5% 25% Median 75% 95%
0%
20%
40%
60%
80%
100%
£0k £50k £100k £150k £200k £250k £300k £350k £400k £450k £500k
Assets on going into care
Max
imum
pos
sibl
e as
set d
eple
tion
Percentiles of housing wealth
£35k cap with extended means test
Current system
Conclusions and recommendations of the Commission on Funding of Care and Support
The reforms reduce the costs individuals face
Initial level of wealthMaximum spend on care
£40,000
£50,000
£70,000
£100,000
£150,000
£9,000
£12,000
£18,000
£28,000
£35,000
Conclusions and recommendations of the Commission on Funding of Care and Support
Care for people of working age
Age Maximum spend on care
Under 40
40 to 50
50 to 60
60 to 65
65 +
Free care
£10,000
£20,000
£30,000
£35,000
Conclusions and recommendations of the Commission on Funding of Care and Support
General living costs− People in residential care would need to make a contribution
towards their general living costs (such as food and heating).
− People have to pay these costs if they live at home.
− Believe this contribution should be fixed - recommending between £7,000 and £10,000 p.a. (as the maximum possible contribution).
Conclusions and recommendations of the Commission on Funding of Care and Support
All spending: £697bn
Conclusions and recommendations of the Commission on Funding of Care and Support
All spending: £697bn
NHS: £103bn
Social security for older people: £85bn
Education: £61bn
Defence: £44bn
The cost of reform: £2bn
Social care and disability benefits for adults: £27bn
Conclusions and recommendations of the Commission on Funding of Care and Support
We are also recommending other reforms− A major campaign to improve information and advice
− Better information and needs assessments for carers
− More consistent, portable assessments with a national eligibility threshold
− Better integration of health and social care
We also think there will be an opportunity for the financial services sector to help people with their contributions.
Thank youCommission on Funding of Care and Supportwww.dilnotcommission.dh.gov.uk