1 Implementing the Dilnot reforms Sebastian Habibi and Sara Mason NCAS Conference 31 October 2014.

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Presentation transcript:

1 Implementing the Dilnot reforms Sebastian Habibi and Sara Mason NCAS Conference 31 October 2014

2 Approach Introduction and contextBuilding the capGetting readyQuestions NCAS October 2014

3 Introduction and Context

4 Funding Reforms – what is it? Limits the amount people have to pay towards their eligible care and support needs. Extension to the welfare state to protect people from the risk of catastrophic care costs. A new partnership between the individual and the state NCAS October 2014

5 The aim is to protect people against catastrophic costs NCAS October 2014 Current system can force people with average and lower wealth to spend >80% of their assets on care & support We assume catastrophic costs = loss of 50%+ of assets Cap and the extension to the means test deliver protection

6 Timeline When?What? 23 October 2014Final regulations & guidance that will come into force on 1 April 2015 published December 2014Consultation on draft regulations and guidance for the cap on care January 2015Launch consultation events February 2015ADASS/DH financial modelling exercise for 16/17 costs March 2015Consultation closes April package of regulations and guidance come into force 7 May 2015General Election October 2015Final regulations and guidance that will come into force on 1 April 2016 published April 2016Funding Reform comes into force NCAS October 2014

7 Building the Cap

8 Tackling policy dilemmas in partnership Worked closely with a range of stakeholders to build approach Will continue to do so to understand costs & challenges NCAS October 2014 Broke down into blocks to resolve issues Challenge: building back up Complex and challenging issues No easy or perfect answers

9 Piecing it back together – the story so far NCAS October 2014 What do we need to do?How are we proposing to do it? Extend means-tested supportPrescribe revised upper and lower capital limits Set the level of the cap£72,000 set in regulations Set how people meter towards the cap Personal Budget Independent Personal Budget Recording progressCare accounts Contribution to daily living costsSet nationally Support after reaching the capLA has ongoing duty to meet eligible needs Communications campaignNational campaign to support local communications

10 Extension to means tested support Eligibility for LA support: Assets above the limits – pay for everything Between the upper and lower limits tariff income applies Assumes for every £250 of assets, can afford to pay £1 per week towards cost of care Tariff income + actual income = contribution to costs Care HomeAll Other Settings 2015 – upper limit£23, – lower limit£14, – upper limits£118,000 unless a property disregard applies £27,000 Or if a property disregard applied in a care home 2016 – lower limit£17,000 NCAS October 2014

11 NCAS October 2014 In a care homeIn all other settings Mr Jones is 72 & in a care home costing £550 per week Mrs Smith is 70 & receives care in her own home at £150 per week. He has a property worth £100,000The value of her property is disregarded. She has £25,000 worth of savings He receives the single tier state pension worth £144 per week She receives a weekly income of £ (single tier state pension £144 & higher rate AA £83.40) He must be left with £25 PEAShe must be left with a MIG of £ What does he pay?What does she pay? He pays tariff income of £332 per weekShe pays tariff income of £32 per week He pays £119 per week from his incomeShe therefore pays £41.95 from her income His total contribution is £451.Her total contribution is £73.95 The LA pays £99The LA pays £76.05 What will this mean?

12 Metering towards the cap Everyone will meter towards the cap. But how? LA supported = Personal Budget –Process for setting personal budget well established. –Will not change Self funder = Independent Personal Budget –New concept –Means the rate “the local authority would pay, if it were meeting the person’s needs” NCAS October 2014

13 Recording progress Everyone’s progress towards the cap will need to be recorded in a care account Will need to capture: –The rate they are metering (PB/IPB) –How much they have accrued Local authorities will need to: –Keep accounts maintained –Ensure people are notified they are about to reach the cap –Ensure a smooth transition to LA support –Provide annual statements NCAS October 2014 Want to be ambitious to ensure statements can be as useful as possible. Will require further work.

14 What will this look like? Mrs Smith is 70. She has dementia and is assessed as having her needs best met in a care home. She has assets of more than £118,000 so does not receive local authority support. NCAS October 2014 Her income is made up of the single tier pension and attendance allowance. The local authority calculates that her needs can be met in a care home which costs £650 per week. She chooses to go to a care home that costs £800 & pays a £150 top up fee. She reaches the cap after 3 years and 4 months, after which: The local authority pays £420 per week to meet her needs. Mrs Smith continues to pay her daily livings costs & her top up fee. Mrs Smith stays in the care home for one more year after which her remaining assets are around £210,000 Assets: £300,000 Income: £390 pw She contributes: Care Costs £420 DLCs c.£230 Top Up £150 Counts towards the cap Doesn’t counts towards the cap Care Costs £420 DLCs c.£230 Top Up £150 LA contributes She contributes

15 Working Age Adults Said there will be a different approach Started with the Dilnot principles: –Those of working age do not have the same ability to plan & prepare for the risk of care & support needs –Need a different approach to reflect this –Recommended a tiered cap approach Challenges: –Discrimination based on age creates cliff edges –Too complicated to communicate –Limited funding envelope NCAS October 2014

16 How are we responding? Identified two priorities to test approaches against: 1.Those born with an eligible care and support need should have a “zero cap” 2.The income working age people are left with after charges should be the same as pensioners This means the idea of a tiered cap is less of a priority NCAS October 2014

17 Getting ready

18 Start now Some questions you should be thinking about: –Who are your self funders? –Where are they? –How are you going to communicate to them? –How are you going to assess them? –How are you preparing your workforce? –Can your workforce do all of this? Are there other options? –What technology might you want to assist you? NCAS October 2014