I know so many of us have faced tough challenges and difficult decisions when it comes to the care of our friends and loved ones. I recognise that the social care system could be working better both for those who use it and for those caring for others.
That is why I am proud to support a Government that is committed to taking the difficult decisions and tackling these problems head on, creating a sustainable adult care system that is fit for the future.
I warmly welcome the publication of the Government’s Adult Social Care Reform White Paper, setting out a ten-year vision for care that puts people and families at its heart. The vision’s core principles are to ensure everyone has choice, control, and support to live independent lives, everyone can access outstanding personalised care and support, and that social care is fair and accessible for everyone.
Over the next three years, £1.7 billion will be spent to improve the lives of those who receive care, as well as their families and carers. This includes £500 million investment in the social care workforce, a £300 million Housing Transformation Fund, to help local authorities increase the range and amount of new supported housing and £150 million to drive new technology and digitisation across social care.
The white paper is part of wider social care plans, backed by £5.4 billion, which for the first time provides a limit to the cost of care for everyone in the adult social care system, and significantly increases state support.
Regarding suggestions that all care be free, I personally agree with the Prime Minister when he says that a universal system of free care for all would be needlessly expensive when those who are wealthy enough to contribute to their care should do so. Under the new reforms, those who have assets below £20,000 will not have to pay anything for their care from their assets. However, people may still need to make a contribution towards their care costs from their income. I support these reforms, which ensure that those who can afford to will contribute more to their care. I note the desire to see these reforms go further. The Government will be opening a consultation on the charging reforms soon and I would encourage you to take part and make your views known in this way. I will also ensure ministers are aware of the points you have raised.
The level at which the state will cover a person’s care costs will be raised from £14,250 to £20,000. Anyone with assets between £20,000 and £100,000 will contribute to the cost of their care but will receive means-tested state support, an upper limit over four times higher than the current one.
Moreover, I know that some people face real financial pressures each week or month after paying for their care. It is therefore welcome that, to allow people receiving means-tested support to keep more of their own income, the Government will unfreeze the Minimum Income Guarantee (MIG) for those receiving care in their own homes. From April 2022 this will rise in line with inflation.
From October 2023, anyone assessed by a local authority as having eligible care and support needs, either new entrants or existing social care users, will begin to progress towards the cap. Costs accrued before October 2023 will not count towards the cap. Before the cap comes into effect, local authorities will work to identify people who currently meet their care costs themselves, to ensure that they can begin progressing towards the cap from the point it comes into effect.
I am glad that the Government's plan for health and social care will tackle persistent unfairness in the social care system. Under the current system, people who fund their own care often pay more than people who are funded through their local authority for equivalent care. It is therefore encouraging that the Government will ensure that self-funders are able to ask their local authority to arrange their care for them so that they can find better value care. I welcome that this has been reiterated in the Government's Adult Social Care Reform White Paper and the Government, with the support of local authorities, care providers and the wider sector, will aim to ensure that self-funders can access the same rates for care costs in care homes that local authorities pay.
As you may be aware, those receiving care themselves, or some else such as a relative, may choose to make additional payments for a preferred choice of accommodation or care arrangement. I am told that the Government intends to change the regulations to enable everyone receiving local authority financial support to fund such top-ups for their own care. These top-up payments, on top of the cost specified in someone’s personal budget or independent personal budget, will not count towards the cap and will still be payable by the person once the cap has been reached.
The new reforms to social care will complement the existing system whereby people in need of residential care can defer payment of care home fees so they do not face the added stress of rushing to sell their home. This system has been in place since 2015 and means that people have the flexibility to avoid selling their home within their lifetime. As part of the process to build on the announcements made, the Government will be working to review the existing scheme in order to provide more flexibility for people to defer their care payments and ensure more people do not have to sell their homes in their lifetime.
Of the £36 billion over the initial three years of the Health and Care Levy, £5.4 billion has been allocated to social care. My expectation is that, after the initial three years, more of the funding raised through the levy will shift naturally towards social care, with progress made on tackling the NHS backlog and as people begin to reach the new £86,000 care cap. The Levy will fully fund that cap in the future.
While I understand that the £86,000 cap does not apply to the cost of accommodation and food, known as daily living costs, I welcome that it will go a long way in helping with the general cost of care for those both in residential homes and in other care settings. Daily living costs are a notional amount to reflect that a proportion of residential care fees are not directly linked to personal care, like rent, food and utility bills and would have had to be paid wherever someone lives. For simplicity, daily living costs will be set at a national, notional amount of £200 per week. The Government has said that they will consult on the reforms to charges, and I would encourage you to take part in this to ensure your views are heard.
Overall, this is an important step on the journey to reform social care in this country and giving more people the dignified care that we all want for our loved ones. As your MP, I can assure you that I will be engaged in all discussions about these reforms and continue to represent the views of constituents.