Social Care Funding reform – post Dilnot report – impact on extra care housing Margaret Edwards Lead London Housing LIN

Questions What effect will the new system have on the demand by older people for extra care housing? Does the new funding system contain financial incentives or disincentives to make particular choices? How much weight future financial systems might have alongside factors such as quality of life? How might social care commissioners behave?

Key features of system Care costs that count towards £72K ‘cap’ are those assessed to meet eligible needs The cost of meeting needs is accumulated, not the individual’s financial contribution The costs are set by LA and reflected in a personal budget Residents in care homes expected to pay up to £12k per year for daily living costs

Choosing residential care? You mean I will be charged for care! I will get £ help after 4 years!! --- When I've spent £72K plus £48K daily living But still pay £12K each year for daily living I can insure against it ---- the insurance premium is how much!!! Is that Channel 4, do Phil & Kirsty look for extra care properties?

Choosing Extra Care to rent Owner occupiers can release equity. If assets  allows non eligible people to meet higher costs (wellbeing charges) & stay independent Move from rented – higher costs but possible access to Housing Benefit Impact on eligible people depends on: – asset levels – how LA treats wellbeing charge – LA costs for individual care

Choosing extra care to buy Downsizers can release equity Increased assets may allow non eligible people to meet higher costs (wellbeing charges) & stay independent Those on low income may get state support (Pension Credit or HB if shared ownership) Impact on eligible people depends on: – asset levels – how LA treats wellbeing charge – LA costs for individual care

Commissioners behaviour Where eligible people contribute towards or pay full costs, LA takes on costs when someone either reaches £72K cap or their assets fall below the relevant threshold. Lower weekly rates prolong the time before people who contribute reach cap or their assets fall below the relevant threshold. Where individuals have assets under £17K at needs assessment and LA has to meet all care costs, then they might also favour whichever type of support has the lowest cost.

Priorities for Extra Care housing providers Evidence base for extra care housing in reducing long-term costs/needs. Find out how LAs in their areas will treat core costs in deciding on a personal budget. (identify the care element within any ‘wellbeing charges’) Break down components of ‘daily living’ costs in and how they compare with residential care. Spell out the flexibility and choice available & what this looks like in practice.