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Personal care costs 'not known' Minister backs costly care policy
(about 1 hour later)
Scotland's flagship policy of free personal care for the elderly was launched without full information on costings, a watchdog report has found. Scotland's health secretary remains committed to free personal care for the elderly, despite a report which said it faced an uncertain financial future.
Audit Scotland said the policy, established by the Scottish government in 2002, had already cost millions more than expected. Nicola Sturgeon said it was a "good policy", but she added that future costs would determine decision making.
It said the government should provide more "comprehensive and robust" costings for future legislation. Spending watchdog Audit Scotland revealed on Friday that there was a funding shortfall of up to £63m.
It also said the policy, introduced in 2002, differed greatly from council to council.
Local authorities said the report showed they were right to press for reform of the free personal care legislation.
Cosla spokesman Ronnie McColl said: "We have long argued that the legislation is unclear in terms of councils' entitlement to charge residents for assisting with the preparation of food."
READ IN FULL A review of free personal and nursing care [1.04MB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader here
Audit Scotland reported that the free personal and nursing care scheme needed to be better planned, managed and funded.
Ms Sturgeon said talks would be held with local authorities with an aim to improve the legislation.
She added: "We have to find out what the cost for the future is and take decisions based on that.
"But I am saying to you very clearly the new government is committed to this policy. It is a good policy and we will take the action necessary to make sure that it lasts for the long-term."
About 72,000 older people receive personal care services free of charge.About 72,000 older people receive personal care services free of charge.
Audit Scotland said the annual funding gap of up to £63m for free personal and nursing care was expected to worsen. Audit Scotland said the annual funding gap of up to £63m was expected to worsen.
It is well documented that Scotland has a growing older population and demand for free personal care will grow Robert BlackAuditor GeneralIt is well documented that Scotland has a growing older population and demand for free personal care will grow Robert BlackAuditor General
It said initial cost estimates were difficult to make because of limited information, but monitoring had also been limited and long-term cost estimates had not been made by the government since 2001.It said initial cost estimates were difficult to make because of limited information, but monitoring had also been limited and long-term cost estimates had not been made by the government since 2001.
The critical report warned policy needed to be better planned, better managed, and better funded.
It added that the government and councils should work "as a matter of urgency" to clarify ambiguities with the policy.It added that the government and councils should work "as a matter of urgency" to clarify ambiguities with the policy.
Auditor General Robert Black said free personal and nursing care was an important policy for older people in Scotland. Auditor General Robert Black said the policy was an important one for older people in Scotland.
Growing shortfallGrowing shortfall
He added: "It is well documented that Scotland has a growing older population and demand for free personal care will grow.He added: "It is well documented that Scotland has a growing older population and demand for free personal care will grow.
"There needs to be better planning and better funding of this policy.""There needs to be better planning and better funding of this policy."
The payments, increased in line with inflation, are about to go up to £149 a week for personal care and an additional £67 for those in a care home which provides nursing care. The payments, increased in line with inflation, are about to go up to £149 a week for personal care, with an additional £67 for those in a care home which provides nursing care.
The total cost of the policy in the first four years was £1.8bn, although councils would have spent £1.2bn even if the policy had not been introduced, as some free services were previously provided.The total cost of the policy in the first four years was £1.8bn, although councils would have spent £1.2bn even if the policy had not been introduced, as some free services were previously provided.
We have long argued that the legislation is unclear Ronnie McCollCosla This £600m gap had led to a growing shortfall in government funding, and by 2005 this annual gap was either £46m or £63m, depending on the assumptions used.
This £600m gap had led to a growing shortfall in government funding, and by 2005 this annual gap was either £46 million or £63 million, depending on the assumptions used.
Health Secretary Nicola Sturgeon said the report supported the approach of the SNP government, which had asked Lord Sutherland to lead a funding review of the policy.
"Having looked back at the legislation, and the guidance given at the time of its introduction, the auditor general found these to be ambiguous, leading to uncertainty and inconsistencies across local authorities" she said.
"This is exactly why we are working in partnership with Cosla to resolve issues such as eligibility criteria, waiting lists and food preparation."
Councils said the report showed they were right to press for reform of the free personal care legislation.
Cosla spokesman Ronnie McColl said: "We have long argued that the legislation is unclear in terms of councils' entitlement to charge residents for assisting with the preparation of food."