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MPs warn older people will suffer due to delays in care cost cap MPs warn older people will suffer due to delays in care cost cap
(21 days later)
Delays in implementing the government’s cap on care costs could leave older people unable to cope with unlimited expenses, according to parliament’s spending watchdog.Delays in implementing the government’s cap on care costs could leave older people unable to cope with unlimited expenses, according to parliament’s spending watchdog.
The public accounts committee has called for ministers to draw up an urgent and clear timetable for implementing the cap in a report released on Wednesday.The public accounts committee has called for ministers to draw up an urgent and clear timetable for implementing the cap in a report released on Wednesday.
The MPs warned that without a cap, cuts in local government finance could lead to “cost shunting”, with people forced to pay extra for their requirements or councils cutting other services.The MPs warned that without a cap, cuts in local government finance could lead to “cost shunting”, with people forced to pay extra for their requirements or councils cutting other services.
The report has been released just weeks after David Cameron was criticised for protesting about cuts to public services suggested by his own Tory council.The report has been released just weeks after David Cameron was criticised for protesting about cuts to public services suggested by his own Tory council.
The Conservative leader of Oxfordshire county council told the prime minister the council was facing new financial pressures because functions including social care had been transferred to local government.The Conservative leader of Oxfordshire county council told the prime minister the council was facing new financial pressures because functions including social care had been transferred to local government.
Related: How will the delay of the cap on care costs affect you?Related: How will the delay of the cap on care costs affect you?
Introduction of the lifetime cap on care costs – a key manifesto commitment – was deferred in July until 2020 after council leaders asked for the allocated funding to be used to ease the growing crisis in day-to-day social care services instead.Introduction of the lifetime cap on care costs – a key manifesto commitment – was deferred in July until 2020 after council leaders asked for the allocated funding to be used to ease the growing crisis in day-to-day social care services instead.
The cap on liability for care costs, set at £72,000 for people above state pension age, was scheduled to be introduced next April under the Care Act, following the recommendations of the Dilnot commission in 2011. An estimated 35,000 people would have benefited immediately.The cap on liability for care costs, set at £72,000 for people above state pension age, was scheduled to be introduced next April under the Care Act, following the recommendations of the Dilnot commission in 2011. An estimated 35,000 people would have benefited immediately.
The committee examined evidence from the National Audit Office and concluded that the government needed to come up with an urgent plan for implementation.The committee examined evidence from the National Audit Office and concluded that the government needed to come up with an urgent plan for implementation.
“It is disappointing that Phase 2 of the Care Act had to be deferred and we are concerned that there are currently no firm plans for its implementation. Its deferral until 2020 means that people will have no limit on how much they have to pay for their own care for longer, until the cap on costs is implemented,” it said.“It is disappointing that Phase 2 of the Care Act had to be deferred and we are concerned that there are currently no firm plans for its implementation. Its deferral until 2020 means that people will have no limit on how much they have to pay for their own care for longer, until the cap on costs is implemented,” it said.
The committee welcomed confirmation that the government would not attempt to bring back £146m already given to councils to prepare for the cap but demanded a clear timetable for the implementation of the plan.The committee welcomed confirmation that the government would not attempt to bring back £146m already given to councils to prepare for the cap but demanded a clear timetable for the implementation of the plan.
The way the Department for Communities and Local Government identifies new cost burdens for councils was also criticised in the report.The way the Department for Communities and Local Government identifies new cost burdens for councils was also criticised in the report.
Meg Hillier, who chairs the committee, said the Care Act should have meant better support for carers, but the government’s austerity programme made support much harder to deliver.Meg Hillier, who chairs the committee, said the Care Act should have meant better support for carers, but the government’s austerity programme made support much harder to deliver.
“If new costs to councils are not adequately funded then services will suffer. There is also a real danger of cost shunting – in this instance, costs of providing care falling on other public services, carers or the people being cared for,” she said.“If new costs to councils are not adequately funded then services will suffer. There is also a real danger of cost shunting – in this instance, costs of providing care falling on other public services, carers or the people being cared for,” she said.
“This is an issue of concern to the committee across public services and we will continue to monitor how the government funds local government.”“This is an issue of concern to the committee across public services and we will continue to monitor how the government funds local government.”
Related: Elderly and social care in the UK: share your experiences
Between 2010-11 and 2015-16, central government reduced funding to local authorities by about 37% in real terms. Local authorities have tried to protect spending on key areas but have been less able to do so over time.Between 2010-11 and 2015-16, central government reduced funding to local authorities by about 37% in real terms. Local authorities have tried to protect spending on key areas but have been less able to do so over time.
The government has calculated that new responsibilities under the Care Act will cost local authorities £470m in 2015-16 and the National Audit Office has estimated that the Care Act Phase 1 will cost £2.5bn to implement from 2013-14 and 2019-20.The government has calculated that new responsibilities under the Care Act will cost local authorities £470m in 2015-16 and the National Audit Office has estimated that the Care Act Phase 1 will cost £2.5bn to implement from 2013-14 and 2019-20.
The Local Government Association warned last week about a £13bn funding black hole faced by councils following George Osborne’s spending review, in part due to the escalating cost of social care.The Local Government Association warned last week about a £13bn funding black hole faced by councils following George Osborne’s spending review, in part due to the escalating cost of social care.
New powers to increase council tax by 2% to pay for social care announced by the chancellor will ease some of the pressure on town halls, but even if all eligible councils take advantage they will bring in just £1.6bn more by 2020 – at a cost of £96 a year to the average Band D council tax payer.New powers to increase council tax by 2% to pay for social care announced by the chancellor will ease some of the pressure on town halls, but even if all eligible councils take advantage they will bring in just £1.6bn more by 2020 – at a cost of £96 a year to the average Band D council tax payer.
A Department for Communities and Local Government spokesman said: “We are committed to updating the new burdens guidance by next spring.A Department for Communities and Local Government spokesman said: “We are committed to updating the new burdens guidance by next spring.
“We are already looking at the possibility of publishing more information on new burdens assessments we undertake, and will be considering with local government, and other departments, what information could usefully be published. A tougher system to review assessments after implementation has been set up so that we can share any lessons learned.”“We are already looking at the possibility of publishing more information on new burdens assessments we undertake, and will be considering with local government, and other departments, what information could usefully be published. A tougher system to review assessments after implementation has been set up so that we can share any lessons learned.”