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© Nuffield Trust 29 May 2012 Reforming the funding of adult social care in England
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© Nuffield Trust Funding social care reform The Dilnot Commission found: Many people on low incomes who need care do not receive it Ten per cent of people face lifetime care costs of over £100K The Commission recommends a £35K lifetime contribution cap, to: Provide certainty Encourage individual saving Promote an insurance market
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Possible funding solutions The Government has baulked at the cost of reform: estimated as an extra £3.6 billion per year by 2025/26 Possible solutions include: Use current primary care trust (PCT) under-spends (projected £1.5 billion in 2011/12) Review the balance of spending across health, social care and welfare, to help the less well-off Increase the level of individual lifetime social care costs to £50K, to fund widening the net of support
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Real-terms spending on health and social care (England)
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Expenditure and demand: older people’s social care (2009/10 prices)
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Number of inpatient admissions per person by age and type of social care received (with 95 per cent confidence intervals shown)
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Social care public spending projections (at 2010/11 prices)
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Expected future lifetime cost of care for people aged 65 in 2009/10 by percentile (2009/10 prices)
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Public expenditure on social care for older people in 2010/11 – the current system and additional expenditure from proposed reform, by quintiles of older people’s income
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Additional costs of care
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Public spending on older people
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Distributional impact of modelled tax and benefit reforms implemented between January 2011 and April 2014 in the UK, by income and family type
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Impact of changes taking effect by April 2012
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Household wealth excluding pension wealth (£)
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© Nuffield Trust 29 May 2012 www.nuffieldtrust.org.uk Subscribe to our newsletter: www.nuffieldtrust.org.uk/newsletter Follow us on Twitter: Twitter.com/NuffieldTrust © Nuffield Trust Anita.charlesworth@nuffieldtrust.org.uk
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