11 July 2012
• Clarity is required on the financial commitment required by individuals and the State
• This will help individuals plan for pensions and care holistically
Sue Elliott, of the Institute and Faculty of Actuaries comments:
“The Institute and Faculty of Actuaries welcomes the Government’s Social Care White Paper (and draft bill) and Progress report on funding, published today. This is the first practical step by the Government towards much needed reform to Britain’s adult social care system. This system has not been significantly updated since 1948. As a result it is confusing and unsustainable.
“With one in four over 65s expected to require some form of care or support at some stage in their lives enabling people to plan for pensions and care holistically is sensible and would mean that individuals could utilise financial advisers professional help to plan for their future.
“The White Paper (and draft bill) addresses many of the structural and legal issues within Britain’s social care system today. It outlines major reforms to services for disabled and elderly adults.
“The Progress report on funding commits to the principle of a “cap” (on the amount individuals will pay for social care), but has deferred a decision as to the level and how it will be funded.
“The Institute and Faculty of Actuaries welcomed the Dilnot Commission’s recommendations, published in July last year, into the funding of care and support. It is our belief that clarity on the financial commitment required by individuals and the State will better prepare individuals to engage and plan for their future care needs - which research shows is not happening now.
“However, it is important to remember that Dilnot is not just about the cap. There are other recommendations that would help to address the issues surrounding adult social care, such as investment in an awareness campaign, new information and advice strategy and the integration of nursing care (NHS) and social care (Local Authorities).
“The Government has indicated that they want to continue talks between parties and with a broad range of stakeholders.
“Actuaries, have the skills to create practical solutions to help individuals plan and to help manage the financial risks created by the demographic changes expected in the future.
“We look forward to continuing to consult with the Government on practical solutions to these issues including the question of funding over the coming months.”
~Ends~
For further information, quotes or Jpeg images contact the media office: Michael.Scanlan@actuaries.org.uk 020 7632 1453 or Karen Wagg on 077 255 58 551
Editorial Notes
• Sue Elliott is chair of the Health and Care Practice Executive Committee.
• By 2058 the number of people over 65 in the UK is expected to double. (Source: ONS: GAD’s 2008-based principal national projections). Life expectancy in the UK is increasing, but healthy life expectancy is not keeping pace. 1 in 4 over 65 year olds can expect to need some form of care and support in the future (Source: Dilnot Commission – call for evidence, December 2010).
• People’s care needs are changing. With increases in illnesses like dementia, planning for future care needs is different from that of previous generations.
• At present the average annual cost of care ranges from £25,000 for basic provision to £50,000 for more specialist needs. The average length of stay in residential care is 2 years for state funded residents, 4 years for self funders but for 1 in 10 people it is 8 years. (Source: Dilnot Commission –call for evidence, December 2010)
• The present adult social care funding system is not fit for purpose. It is confusing and unsustainable.
• Last year saw the publication of two reports that presented a roadmap towards a new sustainable and clear social care structure for Britain. The Law Commission’s 76 recommendations for the reform of social care law and the report into the funding of care and support by the Dilnot commission. As expected the documents published today draw on issues raised within both of these papers.
• The Dilnot report recommended a cap of somewhere between £25,000 and £50,000 for individuals, at which point the State would provide financial aid (Source: Dilnot Recommendations, July 2011).
• In 2010 there were 474,400 available places in care homes of which 418,000 were occupied. (Source: Laing & Buisson, Care of Elderly People UK Market Survey 2010-2011)
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