England left behind in social care funding race

A new report has claimed that England is being ‘left behind’ by a number of developed countries when it comes to funding care for older people.

The Incisive Health report, commissioned for Age UK, highlights the different approaches to long-term care across a group of countries in the developed world, and how they compare to the system in England. It finds that while creating a sustainable social care system fit for a rapidly ageing population is a challenge in all the countries used in the study, Italy, Spain, France, Germany and Japan, England’s system of means tested care funding is notably and broadly unchanged.

In the comparative countries significant change has been implemented over the last 25 years, with Germany having begun to modify its system in 1995 and Japan in 2000. There is also a stark difference in the way that England maintains a stricter means test than the other countries examined in the report, meaning anyone with savings or assets above £23,250 has to pay all the costs of their long-term care. In contrast, Germany provide a non-means tested basic level of support, Japan cap the level of co-payment for all at 10 per cent and France use a more generous and gradual means test.

In England, charges for care have increased as local authorities have come under growing financial pressure. In 2010/11 the average charge was £2016.49 a year, but by 2013/14 (the last comparable year) this had risen by over £500 to £2563.90 (2015/16 prices).

It is worth noting that no country included in the study has succeeded in fully integrating health and care, with differing financial models often proving an insurmountable challenge.

Caroline Abrahams, charity director at Age UK, said: “Sadly, this new report shows that England has been left behind in the race to update the funding of care for older people, compared to some other similar nations. As a result, our older people and their families are paying more and bearing a lot more of the risk of needing expensive long term care. What’s more, the freezing of thresholds and allowances in recent years has made our offer to older people in this country even stingier.

“It is crucial that the forthcoming Social Care Green Paper isn’t yet another failed exercise. The evidence from other countries is that a package of measures that significantly improve the care offer to older people attracts a lot more public support than something more timid – the public isn’t stupid and will demand good value in return for paying more. Our government needs to take note and develop some exciting proposals that will really make a difference. Bringing our care system up to a decent standard and making it sustainable won’t happen overnight and as citizens we will all need to contribute to the cost in different ways, but if they can do it in these other countries surely we can here too. And the sooner we start the better.”

James Jamieson, vice chairman of the Local Government Association, said: “This report helps to stimulate the public debate we are leading on how to provide a long-term solution to funding adult social care to rescue a system in crisis. Adult social care is at breaking point due to years of underfunding, rising demand and costs for care and support.

“Council taxpayers cannot bear the costs of solving this crisis on their own. There is a pressing need to bridge a £3.5 billion funding gap facing adult social care by 2025 just to maintain existing standards of care. Action is needed, which is why, following the government’s postponement of its long-awaited green paper on adult social care, the LGA has published its own green paper to drive forward the public debate on what sort of care and support we need to improve people’s wellbeing and independence and, crucially, how we fund these vital services.”