Welfare It’s not about funding…yet 8 December 2008 NEWS RELEASE For immediate use: 8th December 2008 IT’S NOT ABOUT THE FUNDING…YET SOCIAL CARE FOR OLDER PEOPLE The Resolution Foundation today calls on the Government to improve care for all older people through whole sale reform of the social care system. The Foundation’s report, Navigating the Way, demonstrates how reforming the social care market is essential before future levels of state funding can be determined. The key reforms are: A clear national framework: a national minimum entitlement that limits the current postcode lottery of care across the UK A new strategic role for local authorities: local authorities are best placed to oversee local care markets A care navigation service available to everyone: a first stop shop to end confusion and uncertainty when care is needed These reforms will improve outcomes for everyone, but particularly for low earners. Low earners are today on the cliff-edge of means-testing – the majority are not eligible for free or subsidised care Low incomes make care costs unaffordable today A national minimum entitlement will end the confusion and unfairness currently experienced by low earners The report illustrates how real improvements can be made within existing resources. A funding settlement for the long-term remains essential, but this must relate to a reformed delivery model. Alongside reform measures, Navigating the Way also considers funding. The Foundation concludes that individuals will have to pay for care directly themselves, as well as via tax or national insurance mechanisms. A range of ways that individuals can plan and pay for care is suggested, which require joint action from the Government and the Financial Services Industry. Clive Cowdery, Chair of the Foundation said: “The social care market needs reform before new levels of state funding can be determined. Low earners will then know what to expect from the state and what they need to do themselves. Reform is the first step leading to a long-term financial settlement for older people.” Sue Regan, Chief Executive of the Foundation said: “There can be no excuses for not reforming social care in the short-term. Enabling the market for social care to work effectively is the only way to deliver choice and personalisation for everyone, and much can be achieved within existing resources.” The report will be launched in Parliament today with Phil Hope MP, Minister of State with responsibility for social care and Norman Lamb MP, Liberal Democrat Spokesperson on Health and Dr Alan Whitehead MP speaking. /Ends Stakeholder responses are attached to this press release. For further information please contact Cara Brown on 020 7731 9143 / 07957 536758 cara.brown@resolutionfoundation.org or Caroline Merrell at Temple Bar Advisory on 020 7002 1080. All the Foundation’s research, reports, briefings, seminar notes are available on our website www.resolutionfoundation.org Notes to editor: 1. Resolution Foundation, Closing the advice gap 2, 3. ONS, Family Spending 2007 4. The Foundation’s first project in 2005 was on low earners and their financial health. Discovering an ‘advice gap’ for 12 million low earners of working age and a further 3 million low earners in retirement, the Foundation developed proposals for a national generic financial advice service. This proposed service was aimed at low earners in the ‘advice gap’ – people who are not currently attractive to commercial providers of advice, nor receiving support from existing voluntary sector provision. This work fed into the Thoresen Review which recommended in March this year that a Money Guidance service be set up. This is now at Pathfinder stage backed by £12 million from the Treasury and the FSA. Relevant Resolution Foundation reports can be downloaded from the Foundation’s website: www.resolutionfoundation.org A national dividend: The economic impact of financial advice and The advice gain: The impact of generic financial advice on the financial services industry.
