Chris HorlickManaging Director Care, Partnership

17th July 2013

Care Reform, opportunity or Risk?

A few reminders – why this market

17th July 2013

• Source: * Dilnot Report. ** ONS data. ***White Paper 2012 Progress Report on Funding

• Over 85’s have doubled since 1984 and will double again by 2030*

• 2 million individuals over the age of 50 today will reach 100**

• 10 million people alive today will reach 100**

• 8 of every 10 people aged 65 will require social care of some sort during their lives***

This is structurally a great market to be in, and

Tipping point

“Perfect storm in Social care”

Huge increase in demand driven by demographics and longevity

Huge reduction in available funds driven by comprehensive spending review

demand

funding

17th July 2013

The Dilnot Commission

17th July 2013

Recommendations

• An increase in the upper threshold: – £23,250 to £100,000

• A cap on total individual contribution– Between £25,000 and £50,000 (suggest £35,000)

• Individual contribution to hotel costs – Between £ 7,000 and £10,000

• Consistent portable assessment criteria

• National eligibility criteria for Local Authorities

17th July 2013

Jeremy Hunt’s Funding Announcement

• Increase in the upper threshold from £23,250 to £123,000 (£118k)

• Increase in the lower threshold from £14,250 to £17,500 (no change)

• A lifetime cap on individual contribution of £75k towards care costs (£72k)

• Individual contribution towards general living expenses of £12,000 per annum

• All the above from April 2017

• Deferred Payment scheme from April 2015

17th July 2013

• Joint scrutiny committee reported to DH March 18th 2013

• Budget 20 March 2013

• Queens speech 8 May 2013

• Draft Social Care Bill introduced to parliament

– 1st and 2nd reading in both Houses

– Committee stage

– 3rd reading

– Consideration and amendments

– Royal Assent

• Complete passage through Parliament mid 2014 ??

Parliamentary timetable from here

17th July 2013

• Steering Group on Information and Advice

– ABI, Local Government, SOLLA, ILC.

• Engagement with Financial Services

– Consumers and Marketplace led by PWC

– Pensions and insurance led by ABI

– Housing and Finance led by Lloyds Banking Group

• Rapid Review for Cabinet Secretary in May

– Segmentation

– Financial Products

– Barriers and Enablers

DH engagement

17th July 2013

Clarity or Complexity: the £72,000 contribution ‘Cap’

  Weekly Cost

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

  

Excess above Local 

Authority Rate 

   

£200

                   

Local Authority Rate less Living Costs 

  

£270

                

   

  

Living Costs  

  

£230

                   

TOTAL £700 

                   

Key  

  Self-funded for life

  Contribution limit, i.e. Dilnot Cap to £72K

  State Funding support

• Assumes £700 per week cost of care.

• Assumes £500 per week local authority rate

17th July 2013

The tariff effect post Dilnot

Lower level of means test from £14250 to £17,500 post 2017

Upper level of means test today @ £23,250.00

Post 2016 extension of means test threshold to £118k

The tariff at £1 per £250 of assets above the new lower threshold limit starts at ccirca £400per week if the tariff remains as it is today.

17th July 2013

What does the draft bill do?

17th July 2013

What the draft bill does

Clause/s Commentary

Embedding the principle of wellbeing

1 Embeds the promotion of individual wellbeing as the driving force behind care and support

Reflecting broader local responsibilities

2-7 Provisions which focus on more universal, population-level activities, including general duties on councils to:

• Provide information and advice• Promote the diversity and quality of local services • Cooperate with the other local organisations, and work to integrate services

to promote wellbeing• Provide services to prevent , delay or reduce people’s need for care and

support.

Starting the care journey: assessments and eligibility

8-16 Sets out the process of assessments for both those who need care, and carers. The clauses set out the eligibility framework, with regulations on what constitutes eligible need, and how decisions on support are made. They also leave open the option to establish national eligibility in the future.

Clause 16 allows for regulations requiting councils to offer deferred payment on a universal basis.

Clear entitlements to care and support

17-22 These clauses seek to create a single route through which consistent entitlements to care and support can be established.

The clauses also clarify the circumstances in which care and support may not meet needs – such as when the responsibility rests with another organisation.

17th July 2013

What the draft bill does

Clause/s Commentary

Care planning and personal budgets

23-30 These clauses set out what must happen after an assessment has been conducted, including the care and support planning process for agreeing how eligible needs will be met. As part of this process, the requirement of personal budgets to help people understand the cost of meeting their needs, and what public funding is available to them, will be part of the legislation.

Moving between areas 31-33 These clauses deal with “portability” arrangements to ensure an individual's care and support is not interrupted by virtue of moving from one part of the country to another.

A new framework for adult safeguarding

34-38 Included in the draft bill is the first ever statutory framework for adult safeguarding, which sets out councils' responsibilities and those of the organisations they work with.

Transition from children to adult services

39-44 These clauses give councils the powers to assess children, young carers, and the carers of children, under the adult statute.

Other provisions 45-53 A number of other important provisions are covered in these clauses including:• An update of council powers to recover debts• Restating and rationalising the provisions which focus councils and the NHS

on reducing delayed discharges• Allowing the Secretary of State to issue guidance to councils in relation to

their functions in this bill• Giving councils new powers to delegate some of their care and support

functions to other organisations.

17th July 2013

17th July 2013

“….our advice is that you should take some financial advice”

Thank you

17th July 2013

Partnership is a trading style of the Partnership group of Companies, which includes; Partnership Life Assurance Company Limited (registered in England and Wales No. 05465261), and Partnership Home Loans Limited (registered in England and Wales No. 05108846).

Partnership Life Assurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Partnership Home Loans Limited is authorised and regulated by the Financial Conduct Authority. The registered office for both companies is Sackville House, 143-149 Fenchurch Street, London EC3M 6BN.