Embed Size (px)
Citation preview
A Crisis Fixed?
An update on the state of Social Care in England and its implication for advice
Learning Objectives
• Understand the issues in play in respect if a long term sustainable solution to ‘fix social care’
• Review the governments plans announced on 7th
September 2021
• Explore the role of financial advice in helping more people get the care they need
“I am announcing now – on the steps of Downing Street – that we will fix the crisis in social care once and for all with a clear plan we have prepared to give every older person the dignity and security they deserve.”
24th July 2019
The issues at play
• Public perception/understanding of Social Care
• Political consensus
• Expenditure
• Care for older people v care for working age people
The issues at play• Public perception/understanding of Social Care
• Political consensus
• Expenditure
• Care for older people v care for working age people
• Demand v Supply
• Delivery - Providers, workforce and informal carers
• Technological innovation
• Inequity in the system
• Integration
• Regulated & Non Regulated Advice
Model of Paying for Care
Capping Care Costs State Pension Model Personal Asset Protection
Model of Paying for Care
Capping Care Costs State Pension Model Personal Asset Protection
Funding the fix
• General taxation – income, national insurance or capital taxes
• Social Insurance
• Private care insurance
• Savings products -The Care ISA/pensions
• The State Pension model
• The role of residential property
• PAP
Highlights
• £12bn extra funding x 3 years
• The introduction of a new Health & Social Care Levy
(April 2022)
• An increase in the rates of dividend tax by 1.25 per cent
(April 2022)
• The application of the Health & Social Care Levy to
working individuals above State Pension age (April
2023)
“Why we would target a tax rise on the groups who have been hardest hit by the economic impact of this pandemic, while exempting older and wealthy individuals, is completely beyond me.”
Torsten Bell, Chief Executive of the Resolution Foundation,
Arbitrary
Regressive
Unequal
Highlights• £12bn extra funding x 3 years
• The introduction of a new Health & Social Care Levy
(April 2022)
• An increase in the rates of dividend tax by 1.25 per cent
(April 2022)
• The application of the Health & Social Care Levy to
working individuals above State Pension age (April
2023)
• The unfreezing of the Minimum Income Guarantee
(MIG) and Personal Expenses Allowance (PEA) so they
increase in line with inflation (April 2022)
Highlights 2
• The introduction of a new Dilnot-style £86,000 cap
on the amount anyone in England will need to
spend on their personal care over their lifetime
(October 2023)
Local council rate £500 per week
Self Funder rate £750 per week
Cap reached after 172 weeks (£86,000 / £500 a week)
Total fees paid by time cap in play = £750 x 172 = £129,000.
Highlights 2
• The introduction of a new Dilnot-style £86,000 cap on the amount anyone in England will need to spend on their personal care over their lifetime (October 2023)
• The introduction of a new means- test for adult social care in England (October 2023)
• White Paper later this year - Wider support for the social care system
• A government commitment to work with stakeholders to co-produce a comprehensive national plan for supporting and enabling integration between health and social care
Highlights 3
• Review of Deferred Payments Agreements
• Local Authority rates for self-funders
‘We’re trying hard to recruit, offering “golden hello” bonuses
and “refer a friend” schemes, but ultimately the vast majority
of our work is commissioned directly by cash-strapped councils
– and they just don’t have the funds for us to compete with, for
instance, local jobs in hospitality. Many care staff have left the
sector to take on other jobs; Brexit reforms mean we can no
longer recruit as many people from overseas.’
‘(So) I once again got up on Wednesday wondering: how I am
going to find the people to cover shifts across my care homes?
In common with other nursing and care homeowners, I worry
about how long I can continue to find enough staff to operate
my homes safely. Homecare providers will be looking at
whether they can continue to provide a service – or hand back
their contracts to the local authority and shut up shop.’
The importance of advice
• Delivering paying for care regulated advice
• Building up a level of knowledge to enable you to deliver non-regulated care advice
OR
• Facilitating access to non-regulated care advice
The role of the financial adviser
• making clients / prospective clients aware
• encourage product providers to promote INAs and DNAs direct to consumers / why regulated advice is critical to good outcomes.
• using your knowledge for the wider good in your communities
Building up your non regulated knowledge
1. Should third party Top Ups be paid directly to a Care Provider or to a Local Authority, and why?
2. Are either caravans, mobile homes or houseboats treated as a capital asset or personal possessions when it comes to a local authority financial assessment? What determines this?
3. Are you familiar with Senior Judge Lush’s pronouncements in respect of the payment to attorneys for administering a donors affairs in the absence of any agreement? Or for that matter incurring expenses such as travel.?
www.careboxonline.co.uk/free-trial
Facilitating access to non-regulated care advice
Learning Outcomes
• Understand the issues at play in respect if a long term sustainable solution to ‘fix social care’
• Review the governments plans announced on 7th
September 2021
• Explore the rolee of financial advice in helping more people get the care they need
Thank you for listening
CARE BOX / ADVISER BRIEFING/SPOTLIGHT MAGAZINE
