The Dilnot Report: Fairer care funding - Reforming the funding of adult social care

Successive governments have investigated ways to deal with the issue of social care funding. To date, the key barrier to progress has always been cost. The system is broken and now cannot be ignored, according to the Dilnot report. The ageing population now needs guidance, clarity, financial support and a 'fairer way forward' in relation to social care.

What are the key recommendations of the report?

• An increase in the current means-tested threshold from £23,250 to £100,000, above which people are liable for their full care costs
• Councils to be allowed to take on a major financial services role
• Individuals' lifetime contributions towards their social care costs - which are currently potentially unlimited - should be capped. After the cap is reached, individuals would be eligible for full state support. This cap should be between £25,000 and £50,000. The report considers that £35,000 is the most fair figure

What is the cost of funding the new scheme?

The cost of making the changes recommended in the report with a cap of £35,000 will be around £1.7 billion a year in extra government spending. This is around one four-hundredth of total public spending.

What has been the response to the Report so far?

Health Secretary, Andrew Lansley, has described the report as an "immensely valuable contribution" but highlighted a warning to the government of the "significant costs" of reform.

Peter Beresford, professor of social policy at Brunel University (writing for the Guardian) suggests that Dilnot may have 'gone a bridge too few'. He also comments that the biggest question mark over the commission is how seriously this government is likely to take it.

Our view

Jo Damerell, Partner and Head of Care Homes at Michelmores, comments: "The recommendations as a whole are welcomed. My concern is the timescale for taking action. Age UK has already warned of a social care funding crisis and if major change is not expected until 2014 our care sector clients could be in for a much tougher time (if that is possible) over the coming months and years. I would urge the government to work with those central to the provision of care services to ensure that reform gets underway as soon as possible."

Jo is Head of the Care Home Team at Michelmores. To contact Jo please call 01392 687560 or email joanna.damerell@michelmores.com

To read the report in full please go to:
www.dilnotcommission.dh.gov.uk/2011/07/04/commission-report/