© nuffield trust 29 may 2012 reforming the funding of adult social care in england

© Nuffield Trust29 May 2012

Reforming the funding of adult social care in England

© Nuffield Trust

Funding social care reform

•The Dilnot Commission found:

• Many people on low incomes who need care do not receive it

• Ten per cent of people face lifetime care costs of over £100K

•The Commission recommends a £35K lifetime contribution cap, to:

• Provide certainty

• Encourage individual saving

• Promote an insurance market

Possible funding solutions

•The Government has baulked at the cost of reform:

• estimated as an extra £3.6 billion per year by 2025/26

•Possible solutions include:

• Use current primary care trust (PCT) under-spends (projected £1.5 billion in 2011/12)

• Review the balance of spending across health, social care and welfare, to help the less well-off

• Increase the level of individual lifetime social care costs to £50K, to fund widening the net of support

Real-terms spending on health and social care (England)

Expenditure and demand: older people’s social care (2009/10 prices)

Number of inpatient admissions per person by age and type of social care received (with 95 per cent confidence intervals shown)

Social care public spending projections (at 2010/11 prices)

Expected future lifetime cost of care for people aged 65 in 2009/10 by percentile (2009/10 prices)

Public expenditure on social care for older people in 2010/11 – the current system and additional expenditure from proposed reform, by quintiles of older people’s income

Additional costs of care

Public spending on older people

Distributional impact of modelled tax and benefit reforms implemented between January 2011 and April 2014 in the UK, by income and family type

Impact of changes taking effect by April 2012

Household wealth excluding pension wealth (£)

© Nuffield Trust29 May 2012

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© Nuffield Trust

Anita.charlesworth@nuffieldtrust.org.uk