Rowntree Foundation publish options for care funding

monkeyspanner

The Joseph Rowntree Foundation have published suggestions for reform of the care funding system. Summary of report here.
http://www.jrf.org.uk/media-centre/UK-care-system-implementing-reforms

Main proposals are:
The four proposed interim solutions are:

• Equity release, allowing older homeowners to pay for home-based care by deferring the costs until their home is sold. Cost: estimated £33 million a year
• Higher capital limits for care home fees to help those with modest assets by raising the ceiling that dictates whether an individual in a care home receives support from a local authority (from £22,250 to £42,500). Cost: £280 million a year
• Doubling the personal expenses allowance to give more dignity to people in care homes supported by local authorities who currently have just £21.90 per week to cover personal items such as clothes and shoes. Cost: £250 million a year
• Free personal care for all people requiring nursing care to remove inconsistencies between whether or not nursing care is funded by the NHS or the individual. Cost: £212 million a year

All a bit accademic I think in the financial climate but interesting anyway.

EdInvestor

• Equity release, allowing older homeowners to pay for home-based care by deferring the costs until their home is sold. Cost: estimated £33 million a year

Does this mean that the deferred payment arrangement would become a right, and everyone would then be able to access care homes at the same rates as the council?

monkeyspanner

EdInvestor wrote: »

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[/list]Does this mean that the deferred payment arrangement would become a right, and everyone would then be able to access care homes at the same rates as the council?

It was worded more towards home care and provision of a system to enable people to access care.

Errata

The reason some local authorities can negotiate a lower fee with some care homes for the residents funded by them is that they can practically guarantee continual occupancy of an agreed number of bedspaces. Something an individual isn't able to do.

EdInvestor

Errata wrote: »

The reason some local authorities can negotiate a lower fee with some care homes for the residents funded by them is that they can practically guarantee continual occupancy of an agreed number of bedspaces. Something an individual isn't able to do.

The so called 'bulk buying'.It's not IMHO really relevant that there is a commercial reality behind this system - far more important that it is perceived by everyone who knows about it to be blatantly unfair and exploitative that people who are forced to use their own money to pay their way in a care home are charged more than people who are funded by the taxpayer - often very significantly more.

This is just plain wrong.

Errata

But it's the care homes that are doing the exploiting by offering the reduced fee to the LA, and not all of them offer it.

EdInvestor

Then the LA can even up the payments by offering the savings it is making as a subsidy to the self funders.It's within the Govt's ability to sort this problem out.

monkeyspanner

It depends on which price level is the correct one to provide a proper level of care. Are the care homes cutting corners in order to meet the LA funding levels and making up some of the difference by charging the self funders more? As edinvestor says it could be sorted out.

What ever you think about the use of self funders property and capital to pay care home fees it is clearly an abuse that self funders should be subsidising LA assisted residents as well as paying their own fees.