1. Thursday June 13th, 2013 James Lloyd Director Strategic Society Centre
The ‘capped cost’ reforms and the care market A ‘talking point’ presentation to the National Care Forum
Thursday June 13th, 2013
James Lloyd
Director
Strategic Society Centre

2. About the Strategic Society Centre
Independent, non-partisan public policy think tank.
Interested in the big, strategic challenges facing society.
Learn more about us at:

3. Why have this discussion now?
The government has committed to historic reforms of long-term care funding in England from April 2016: the ‘capped cost’ model.

4. Costs included and excluded from the cap
Department of Health (2012) Caring for our future: progress report on funding reform

5. Why have this discussion now?
The government has committed to historic reforms of long-term care funding in England from April 2016: the ‘capped cost’ model.
What will this actually mean on April 1st 2016?

6. By April 1st 2016…
Each of the 125,000 self-funders in residential care in England will have to had a LA means assessment and needs assessment.
Councils will have given each self-funder a ‘care account’.
This will increase each week from April 1st by the local authority ‘usual cost’ rate minus the standardised living cost contribution (c.£230 per week).

7. What will be the effect?
For the first time, all self-funders and providers will know the local authority ‘usual cost’ rate.
‘Top-ups’ will become far more explicit.
Potential unknown consequences for operation of residential (+ home) care markets.

8. Taking a positive view
Are these changes an opportunity to address longstanding issues?
Self-funder premium
Monopsony power of LAs and effect on fees
Others?
But unknown consequences?
Disputes between self-funders and providers over fee levels?
More self-funders opting to have LA procure care
End to formal ‘ban’ on top-ups

9. Taking a positive view - what do we want from this ‘new world’?
Public knowledge – members of the public have a knowledge of the weekly cost of a place in a care home in their area;
Consumer knowledge – self-funders of domiciliary or residential care have adequate knowledge of the cost of different types of care in their area;
Public understanding of local authority procurement – the public understands what their local authority pays for different types of care;

10. Taking a positive view - what do we want from this ‘new world’?
Sustainability – the rates paid to care homes are coherent with investment in facilities and training, good pay and conditions, and a reasonable rate of return;
Transparency – the rates paid by councils for care, and the way in which these prices are set, are transparent and accessible;
‘Fair price for care’ – the same price paid for care of a similar quality, whether paid for by a local authority or ‘self-funder’;
Quality – the price of care appropriately reflects quality of accommodation.

11. James Lloyd Director Strategic Society Centre Loman Street London SE1 0EH The Strategic Society Centre is a registered charity (No ) incorporated with limited liability in England and Wales (Company No ).