Department of Health
Dear Transformation Group Member,
CARING FOR OUR FUTURE: IMPLEMENTING FUNDING REFORM
In February, the Government announced historic reforms to give everyone more certainty and peace of mind over the cost of old age, or of living with a disability.
I am pleased to inform you that today we have launched a public consultation looking at the practical detail of implementing proposed funding reforms. Plans to help people better prepare for the cost of their future care needs have been published alongside details of how the new fairer funding system will protect homes and savings.
From 2016 the reforms will deliver a new cap of £72,000 on eligible care costs, additional financial help for people of modest wealth with less than £118,000 in assets including their home and, from 2015, a scheme to prevent anyone having to sell their home in their lifetime.
The consultation confirms details of the plans including:
- for people entering a care home, their property will not be included in the assessment of assets if a partner or dependent still lives in the home. In this case if a person has assets of less than £27,000 (excluding their home) they will qualify for financial assistance; and
- many people getting financial support towards the costs of meeting their eligible needs will reach the cap without paying out the whole £72,000 themselves. Because the cap is based on the total cost of meeting someone’s eligible needs, not just their own contribution, an individual’s payments are added to those made by the local authority when measuring progress towards the cap.
As we heard at the last meeting of the Transformation Group, the work of the paying for care sub-group has been invaluable in getting the proposals ready for this wider consultation. As we enter this next phase of the process, I know there are many details and issues to be worked out around how the changes are implemented. As Co-Chairs of the Transformation Group, Heléna Herklots and I are keen to hear people’s views to help deliver a care and support system that is fairer for everyone. The consultation process will allow both the organisations tasked in delivering these changes, and the people who will benefit from them, to contribute to making decisions on how they will be made.
Running until 25 October, the consultation launched today asks for people’s views on how these changes to the funding system should happen and be organised locally. We want this to be an open and collaborative process to ensure that the new care and support payment system is effective, fair and sustainable The consultation can be accessed via https://www.gov.uk/g...-funding-reform and we will be providing opportunities to engage for a wide range of stakeholders attending events and meetings over the Summer. Details will be made available at the above website.
Councils, care and support sector organisations (such as care homes) and individuals all have a part to play. This is significant change that requires changes to how councils operate currently, and to how people plan and prepare for future care costs.
It has been through your contribution that we have managed to come this far. We look forward to continuing this engagement throughout the consultation and beyond as we design and implement these changes.
Norman Lamb MP
Minister of State for Care and Support