Fairer Funding for All – The Commission’s Recommendations to Government
On 4 July the Commission reported to Government with its finding and recommendations for a new funding system.
The report highlighted that the current funding system is in urgent need of reform: it is hard to understand, often unfair and unsustainable. People are left exposed to potentially catastrophic care costs with no way to protect themselves.
Our recommendations set out how Government could dramatically improve the system and make it one we can be proud of. They include the following proposals:
- Individuals’ lifetime contributions towards their social care costs – which are currently potentially unlimited – should be capped. After the cap is reached, individuals would be eligible for full state support. This cap should be between £25,000 and £50,000. We consider that £35,000 is the most appropriate and fair figure
- The means-tested threshold, above which people are liable for their full care costs, should be increased from £23,250 to £100,000
- National eligibility criteria and portable assessments should be introduced to ensure greater consistency
- All those who enter adulthood with a care and support need should be eligible for free state support immediately rather than being subjected to a means test.
The Commission estimates that its proposals – based on a cap of £35,000 – would cost the State around £1.7billion.
Andrew Dilnot, chair of the Commission, said:
The issue of funding for adult social care has been ignored for too long. We should be celebrating the fact we are living longer and that younger people with disabilities are leading more independent lives than ever before. But instead we talk about the ‘burden of ageing’ and individuals are living in fear, worrying about meeting their care costs.
“The current system is confusing, unfair and unsustainable. People can’t protect themselves against the risk of very high care costs and risk losing all their assets, including their house. This problem will only get worse if left as it is, with the most vulnerable in our society being the ones to suffer.
“Under our proposed system everybody who gets free support from the state now will continue to do so and everybody else would be better off. Putting a limit on the maximum lifetime costs people may face will allow them to plan ahead for how they wish to meet these costs. By protecting a larger amount of people’s assets they need no longer fear losing everything.
To accompany the report there are two additional published volumes – Volume II Evidence and Analysis, and Volume III Supporting Documents.
All of these documents are available below along with a presentation illustrating the recommendations that the Commission gave at the launch event on 4th July.
You can also view the press notice.