When care is discussed in the mainstream media, the focus continues to either be on isolated cases of poor standards or consumer costs both now and in the future under the new Care Bill.
Very little thought appears to have been given to the real impact on councils or those looking to manage local authorities budgets which are under enormous strain.
However, it is important that the pressures on councils are recognised in the provision of care.
Demography dictates that this pressure can only increase. With around 400,000 elderly people currently in residential care, this number is anticipated to rise to 750,000 by 2031 and 1.5 million by 2081.
According to a recent Local Government Information Unit report, in 2011/12 almost a quarter (24%) of self-funders depleted their assets prematurely and fell back on state funding costing an estimated £425m in that year in England alone.
The reason is that very few self-funders receive advice from an appropriately qualified financial
adviser so there is a risk they will either buy the wrong product or none at all.
While the Care Bill will refine and amalgamate disparate legislation for the benefit of consumers, it also needs to take into account the finances and resources available to councils.
The most discussed aspect of the Bill is the Care Cap where a cap on individuals personal social care costs will be set at £72,000 and be introduced in April 2016.
In addition, the upper level of the means test threshold is to be raised to £118,000 enabling people to preserve more of their wealth.
Another aspect of the proposed legislation that has caught the attention of the more specialist media is that councils will have a duty to provide information and advice on how to access independent financial advice.
Anyone who has ever been part of the process of finding a care home knows that it can be mentally and physically exhausting.
The financial services industry is keen that this information and advice is not just a sign posting exercise – easily ignored at a time of great stress –but that it actively encourages people to speak to a regulated independent financial adviser.
Why? The obvious answer is that they will sell more financial products to fund care but it will also mean that fewer people will need to fall back on to local government support.
With average annual fees for a residential care home amounting to £27,248 but a typical pension income only £11,600, this is a real possibility for an increasing number of people.
One service that is already working with local councils including Hertfordshire CC and Nottinghamshire CC to help those looking for information is PayingForCare.
This not-for-profit service was set up by Partnership Assurance to help older people, their families, friends and carers access information and advice allowing them to make informed choices about how to pay for their care.
Central to the service is the website (www.payingforcare.org) which provides information, news and views on funding.
As the website is impartial and free to use, care sector organisations such as local authorities, councils, charities and advocacy services can suggest their clients access this information without worrying that they will be charged a fee or receive a ‘hard sell' from an adviser.
If they do wish to access financial advice, they can use the ‘live chat' feature or call 0808 208 9694 to discuss their situation with a regulated specialist care fees adviser and – if they so wish – book a face-to-face appointment.
In addition to the information, the site recently launched the UK's first Care Cap Calculator which helps people to identify how much they will spend before they hit the cap, how long this might take and how much they will still need to spend even after reaching the cap.
This sophisticated, but easy-to-use tool, takes into account factors such as the type of care required, state benefits available and region to create a visual representation of expected costs.
If a person already knows how much the care is likely to cost, they can also input the information into the ‘personalised calculation' section. This tool will provide them with a more specific cost and payment timeline.
This is particularly useful for the 57% of people who are full or partial self-funders as it allows them to budget to avoid needing to fall back on state support.
Ultimately, the Care Bill when it comes into play will mean that consumers as well as councils need to change the way in which they approach the provision and funding of adult social care.
Services such as PayingForCare will be a useful tool to help both parties manage this transition and, if all goes well, these changes will mean a much better system that will provide a higher standard outcome for all concerned.
Chris Horlick is the chairman of PayingForCare
