Why IS care system in meltdown?

How is social care funded?

Councils provide social care. People with assets of more than £23,250 pay full care costs whether it is in a care home or their own home. An ageing population puts pressure on town halls, and the NHS suffers from ‘bed blocking’ if care is not available for someone who is ready to leave hospital.

What has the Government done so far?

In last year’s Autumn Statement, then chancellor George Osborne gave town halls the right to impose a social care precept, initially set at 2 per cent a year, to help cover costs of looking after the elderly. This is in addition to the 2 per cent increase councils can levy each year to fund other services.

How much has it raised?

Some 144 of 152 adult social care authorities implemented the rule, raising £382million this year and adding £22 to the average yearly council tax bills. But town halls say this won’t cover the £612million national living wage bill which has a huge impact on care home costs.

How much do councils want?

Izzi Seccombe, Tory leader of Warwickshire County Council and chairman of the Local Government Association’s community wellbeing board, said: ‘We need £1.3billion now.’ But this is still barely a tenth of the foreign aid budget – and the exact sum we give Brussels in aid to spend on our behalf. By 2020, there will be a shortfall of £2.6billion.

What are ministers planning to give them?

Under Osborne’s plan, councils could have increased the precept by 6 per cent between now and the end of Parliament – a fixed 2 per cent rise each year to 201 /20. Under new plans, they can increase bills by a maximum of 6 per cent over the next three years – but will be given ‘flexibility’ over how this is done i.e. they could raise the care precept by 3 per cent next year, followed by 3 per cent in 2018/1 and a freeze the following year. The only rule is that, in a single year, the rise cannot be more than 3 per cent.

What will this mean for an average bill?

If a council imposes a 3 per cent rise next year, this would be in addition by James Slack to the 2 per cent they can hike bills for other services – giving a total rise of 5 per cent. This adds about £76 for the average Band D council tax property currently paying £1,530.

Will it solve the problem?

The King’s Fund think-tank says just increasing the precept ‘is deeply flawed’. The amount raised depends on the existing size of the bill, the value of the properties and the number of residents receiving discounts. Labour claim the poorest areas, where problems are most acute, therefore receive less money. Ministers accept this but say councils which lose out are compensated by the Better Care Fund.

What is the Better Care Fund?

It is a pot of money that councils share with the NHS, which is worth £3. billion this year and is due to rise by £1.5billion in 201 . It’s targeted at areas which can raise less money from the precept. Many argue the extra funding should be brought forward. Whitehall insiders have suggested an extra £ 100million could be made available in 2017/18 for social care.

Is it purely a question of money?

Number Ten insist not. Ministers say there’s a 20-fold difference between the best and worst performing areas on delayed discharges, or bed blocking. Half of all delayed discharges took place in just 20 local authority areas (13 per cent of the total). Long term, experts insist the best solution is to merge NHS and social care budgets.

Why wasn’t it addressed in the Autumn Statement?

Philip Hammond yesterday said he’d discussed social care with the PM ahead of the Statement, but denied she had vetoed the idea of more cash. The Chancellor said ministers could not fail to have heard the ‘cacophony’ of lobbying by councils and health trusts.