1 conclusions and recommendations of the commission on funding of care and support fairer care...
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Conclusions and recommendations of the Commission on Funding of Care and Support
Fairer care funding
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Conclusions and recommendations of the Commission on Funding of Care and Support
The number of older people is increasing
0%
20%
40%
60%
80%
100%
65-69 70-74 75-79 80-84 85+
Growth in the number of older people in England 2010-2030
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Conclusions and recommendations of the Commission on Funding of Care and Support
Flexible societies are good at adaptingProportion of UK population aged 65 and over
0%
5%
10%
15%
20%
25%
1901 1921 1939 1961 1981 2001 2021
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Conclusions and recommendations of the Commission on Funding of Care and Support
Social care is one element of state supportPublic spending on older people in England 2010/11
Social security benefits
Social care
NHS
£0bn
£50bn
£100bn
£150bn
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Conclusions and recommendations of the Commission on Funding of Care and Support
Funding has not kept up with demandExpenditure and demand: older people’s social care (2009/10 prices)
Expenditure
Demand
£6.0bn
£6.5bn
£7.0bn
£7.5bn
£8.0bn
2005/06 2006/07 2007/08 2008/09 2009/10
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Conclusions and recommendations of the Commission on Funding of Care and Support
Care costs are uncertain and can be very highExpected future lifetime cost of care for people aged 65 in 2009/10
£0k
£50k
£100k
£150k
£200k
£250k
£300k
0% 20% 40% 60% 80% 100%
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Conclusions and recommendations of the Commission on Funding of Care and Support
Fear is the natural response to current system Maximum possible asset depletion for people in residential care
5% 25% Median 75% 95%
0%
20%
40%
60%
80%
100%
£0k £50k £100k £150k £200k £250k £300k £350k £400k £450k £500k
Assets on going into care
Max
imum
pos
sibl
e as
set d
eple
tion
Percentiles of housing wealth
£150k lifetimecost
£100k
£75k
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Conclusions and recommendations of the Commission on Funding of Care and Support
Care costs are uncertain and can be very highExpected future lifetime cost of care for people aged 65 in 2009/10
£0k
£50k
£100k
£150k
£200k
£250k
£300k
0% 20% 40% 60% 80% 100%
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Conclusions and recommendations of the Commission on Funding of Care and Support
A cap removes the risk of very high costsExpected lifetime costs for people going into care in 2010/11, by percentile
£0k
£50k
£100k
£150k
£200k
0% 20% 40% 60% 80% 100%
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Conclusions and recommendations of the Commission on Funding of Care and Support
And offers significant asset protection Maximum possible asset depletion for people with £150k residential care costs
5% 25% Median 75% 95%
0%
20%
40%
60%
80%
100%
£0k £50k £100k £150k £200k £250k £300k £350k £400k £450k £500k
Assets on going into care
Max
imum
pos
sibl
e as
set d
eple
tion
Percentiles of housing wealth
Current system
£35k cap
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Conclusions and recommendations of the Commission on Funding of Care and Support
But we also need to reform the means testThe effect of extending the means test on the amount of support people receive
Currentsystem
0%
20%
40%
60%
80%
100%
£0k £25k £50k £75k £100k £125k
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Conclusions and recommendations of the Commission on Funding of Care and Support
But we also need to reform the means testThe effect of extending the means test on the amount of support people receive
Reformed system
Currentsystem
0%
20%
40%
60%
80%
100%
£0k £25k £50k £75k £100k £125k
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Conclusions and recommendations of the Commission on Funding of Care and Support
Extending the means test helps the poorestMaximum possible asset depletion for people with £150k residential care costs
5% 25% Median 75% 95%
0%
20%
40%
60%
80%
100%
£0k £50k £100k £150k £200k £250k £300k £350k £400k £450k £500k
Assets on going into care
Max
imum
pos
sibl
e as
set d
eple
tion
Percentiles of housing wealth
Current system
£35k cap
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Conclusions and recommendations of the Commission on Funding of Care and Support
Extending the means test helps the poorestMaximum possible asset depletion for people with £150k residential care costs
5% 25% Median 75% 95%
0%
20%
40%
60%
80%
100%
£0k £50k £100k £150k £200k £250k £300k £350k £400k £450k £500k
Assets on going into care
Max
imum
pos
sibl
e as
set d
eple
tion
Percentiles of housing wealth
£35k cap with extended means test
Current system
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Conclusions and recommendations of the Commission on Funding of Care and Support
The reforms reduce the costs individuals face
Initial level of wealthMaximum spend on care
£40,000
£50,000
£70,000
£100,000
£150,000
£9,000
£12,000
£18,000
£28,000
£35,000
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Conclusions and recommendations of the Commission on Funding of Care and Support
Care for people of working age
Age Maximum spend on care
Under 40
40 to 50
50 to 60
60 to 65
65 +
Free care
£10,000
£20,000
£30,000
£35,000
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Conclusions and recommendations of the Commission on Funding of Care and Support
All spending: £697bn
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Conclusions and recommendations of the Commission on Funding of Care and Support
All spending: £697bn
NHS: £103bn
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Conclusions and recommendations of the Commission on Funding of Care and Support
All spending: £697bn
NHS: £103bn
Social security for older people: £85bn
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Conclusions and recommendations of the Commission on Funding of Care and Support
All spending: £697bn
NHS: £103bn
Social security for older people: £85bn
Education: £61bn
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Conclusions and recommendations of the Commission on Funding of Care and Support
All spending: £697bn
NHS: £103bn
Social security for older people: £85bn
Education: £61bn
Defence: £44bn
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Conclusions and recommendations of the Commission on Funding of Care and Support
All spending: £697bn
NHS: £103bn
Social security for older people: £85bn
Education: £61bn
Defence: £44bn
Social care and disability benefits for adults: £27bn
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Conclusions and recommendations of the Commission on Funding of Care and Support
All spending: £697bn
NHS: £103bn
Social security for older people: £85bn
Education: £61bn
Defence: £44bn
The cost of reform: £2bn
Social care and disability benefits for adults: £27bn
Thank youCommission on Funding of Care and Supportwww.dilnotcommission.dh.gov.uk