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Saving for Care Bills

elderly care

Recent research by AIG Life has found that 69% of people think they will need care at some point in their lives with 76 being the most likely age that this will need to take place.

The survey of 3000 people in the UK asked about views on funding care. 48% said they were in favour of saving into a dedicated care fund so long as it was passed to their estate if it wasn’t fully used.

The government – in it’s current state of paralysis – has been unable to bring forward any solution to the social care funding problem. Not least because almost all of the solutions will need cross party support.

National Care Funding Options

Amongst the options being suggested are: Saving into a fund. Paying more income tax. Paying a social care tax. Paying more on assets or property. Increasing the retirement age and selling property.

The current funding care system requires the person needing help – or relatives on their behalf – to use up their savings, and sell their property if they end up having to move into a care home, down to a floor of £23,250.

9 out of 10 people have no plans to cover their care needs at present, but incentives could encourage more people to prepare to contribute to the cost.

About Deckchair Care

Deckchair Care are an independent, privately-owned care agency. We look after the elderly in Cheshire and South Manchester.

Read more about our care service

Thanks to ChatGPT for help creating and editing this article.

elderly care

Deckchair Care are an independent, privately-owned care agency. We look after the elderly in Cheshire and South Manchester.

Read more about our care service

Thanks to ChatGPT for help creating and editing this article.

elderly care
elderly care
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More Care Cuts in a Failing System

Home much does home care cost

Some councils are warning that further cuts to care services will be needed in the coming year.

Local authorities plan to spend £22.5bn in 2019-20 on services for older people and younger adults with disabilities. Up £400m on 2018. However increasing demand and inflation means that this is not enough (according to the Association of Directors of Adult Social Services).

The government – now nearly two years behind schedule – has said it would be looking to publish plans to overhaul the system “at the earliest opportunity”.

Councils have had to make £7bn of cuts to care budgets since 2010 and it is predicted that there needs to be another £700m of savings in the coming year.

This means even more focus on those with the highest needs to make ends meet.

There is a desperate lack of money in the system and over a third of the anticipated spend for 2019-20 would come from charges to the public and separate one-off grants.

In England, 30% of older people get little or no help. 38% get help from family and friends, while 21% get council help and 12% pay for help.

About Deckchair Care

Deckchair Care are an independent, privately-owned care agency. We look after the elderly in Cheshire and South Manchester.

Read more about our care service

Thanks to ChatGPT for help creating and editing this article.

elderly care

Deckchair Care are an independent, privately-owned care agency. We look after the elderly in Cheshire and South Manchester.

Read more about our care service

Thanks to ChatGPT for help creating and editing this article.

elderly care
elderly care
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Yet Another Idea to Fund Social Care

Funding social care

The Centre for Policy Studies proposes a system in which everyone receives a state-funded weekly care payment.

This would be part funded by wealthier homeowners being asked to make a voluntary payment of up to £30,000 for their care needs in old age.

Those able to downsize or release equity from their homes would also be encouraged to contribute more to plug the current funding gap.

But critics say it would not be enough to address the £7bn shortfall.

As with every idea to fix the social care funding gap, the opposition has taken the political high ground and called on the government to reject the plan, which would “punish older people with a tax on getting old”.

At the moment, everyone with more than £23,250 has to pay for support. Below that threshold, they contribute to the cost – with the amount paid based on means-testing of both savings and income.

Previous Attempts

Attempts by successive governments to reform provision in England have foundered amid political disagreements and concerns over the financial costs involved.

The Conservatives dropped plans in 2017 to make people receiving care at home liable for the full cost if they were worth at least £100,000 following a political outcry.

Theresa May was accused of trying to introduce a “dementia tax” by charities and pensioner groups who said people would no longer be able to pass their homes down to their children if property values were taken into account when calculating care costs.

A previous idea has been to cap a individuals’ lifetime care costs (£50k then increased to £72k), although the Tories dropped the idea in 2017

Another scheme was to be take into account the value of an individual’s home when assessing both domestic and residential care costs. The PM quickly did a u-turn, saying costs would be capped – then the plans were – as usual – shelved after the snap election.

Labour have also struggled to get cross party support. They proposed charging a 10% levy on the estates of deceased people to pay for care costs. Amid a political backlash, the plans were dropped.

Is there an Answer?

Longer-term, everyone agrees that a radical overhaul is needed, bringing in a Universal Care payment each week for everyone regardless of their wealth. This would be similar to the state pension allowance and be paid for out of taxes.

The trouble is, increasing taxes isn’t exactly a vote winner.

Read more about the latest proposals on the bbc website here

About Deckchair Care

Deckchair Care are an independent, privately-owned care agency. We look after the elderly in Cheshire and South Manchester.

Read more about our care service

Thanks to ChatGPT for help creating and editing this article.

elderly care

Deckchair Care are an independent, privately-owned care agency. We look after the elderly in Cheshire and South Manchester.

Read more about our care service

Thanks to ChatGPT for help creating and editing this article.

elderly care
elderly care
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New Tax to Fund Social Care Being Considered

Home much does home care cost

A new tax being considered by ministers as a way to fund social care could raise up to £15bn a year, according to a new report.

The proposal would see a 2.5 per cent levy applied to the earnings of people over the age of 40, similar to the model used in Germany.

The revenue generated by the new tax would go into a ring-fenced pot used to fund social care.

A government green paper on elderly home care is due to be published before Christmas.

Research suggests the German-style system could raise half of the money needed to plug the gap in social care funding .

Under the proposal, people receiving care would be given cash pay-outs to enable them to pay care agencies or family members.

The House of Commons health and local government committees said in a joint report that the levy should be paid only by people over the age of 40, including pensioners over the age of 65.

The proposals are similar to a scheme in operation in Germany and Japan.

Read more about the proposals here

About Deckchair Care

Deckchair Care are an independent, privately-owned care agency. We look after the elderly in Cheshire and South Manchester.

Read more about our care service on our website here.

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Analysis Shows 25% Cuts to Elderly Care

Care agency service

Spending on vital care services for the elderly has been cut by a quarter per head since 2010, a BBC analysis shows.

An analysis by the BBC found reported spending on care for the over-65s has fallen by a quarter to £747 per head in England since 2010 once inflation is taken into account.

While facing the same pressures of an ageing population, in comparison, Wales and Scotland have largely protected their budgets.

Councils, which administer the system, have sympathy for the plight of the vulnerable who rely on their services.

The Local Government Association (LGA) became so fed up with waiting for the government that it produced its own Green Paper.

It called for tax rises so town halls could invest more in the system.

“The current situation is unsustainable and is failing people on a daily basis.”

Read more about the analysis here

About Deckchair Care

Deckchair Care are an independent, privately-owned care agency. We look after the elderly in Cheshire and South Manchester.

Read more about our care service on our website here.

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Example of a National Social Care Funding System

elderly care

Every rich country has a problem with social care, and two of them have come up with potential solutions.

Long Term Social Care Solutions

Germany and Japan have developed comprehensive responses to an ageing population.

Germany introduced a mandatory long-term care insurance system in 1995. The scheme was designed to ensure that everyone got something, no one gets something for nothing and everyone puts something in. A compulsory levy is paid by workers with employers contributing 50%. Retired people pay in full.

Japan started a similar system in 2000. A national tax is paid by workers over 40.

Both solutions centralise funding and revenue, then pay out funds to be delivered locally.

Read more about these solutions here (pay wall may apply).

 

About Deckchair Care

Deckchair Care are an independent, privately-owned care agency. We look after the elderly in Cheshire and South Manchester.

Read more about our care service on our website here.

elderly care

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Healthcare Provider Transfers Care Contracts

Home much does home care cost

A major UK home care provider – is seeking to transfer or sell all its contracts to other providers.

Allied Healthcare was warned this month by the CQC about its financial sustainability. Some local authorities had already taken steps to find new providers.

Home care agencies provide services such as preparing meals, washing and giving medication.

The company said it had to re-evaluate its long-term business plan and was exploring the sale or transition of services to alternative providers, including the transfer of staff.

Allied Healthcare, councils, the regulator and the government are focused on making sure vital care will continue as normal for the more than 13,000 people, who get visits from the company’s staff.

Read more here

About Deckchair Care

Deckchair Care are an independent, privately-owned and financed care agency. We help to look after the elderly in Cheshire and South Manchester.

Currently, we do not work with councils on a contractual basis because the fees that are available are well below what is needed to provide a sustainable level of care.

We pay our staff well above the minimum wage. The level of service we offer would not be possible  based on council funding alone.

However, we do work with private clients that receive council contributions to their care that they top up. We work closely with our colleagues in the council, social care and NHS departments to support clients that are referred to us.

Read more about our care service on our website here.

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Allied Healthcare Struggling with Low Social Care Payments

care agency in stockport

The Care Quality Commission has issued a notice saying it has serious doubts about the future of Allied Healthcare.

However a spokesman for Allied Healthcare has said the company was “surprised and deeply disappointed” by the move, and that it was “premature and unwarranted” as there was no risk to services because financing had been secured.

However, the CQC said it was concerned about its prospects from the end of this month.

UK Care Agency

The care agency provides services, such as help washing and dressing, to more than 13,000 people across the UK.

The regulator has written to all the affected local authorities as they would have responsibility to step in if services are disrupted.

Earlier this year Allied announced it was struggling with debts blaming low fees paid by councils.

The regulator said it had a legal duty to warn councils that business failure was likely and services could stop.

It is important to note – especially for staff and clients that it does not mean failure will definitely happen. Just that as things stand it is deemed likely.

This is the first time a notice like this has been issued to a whole provider – previous warnings have just related to individual services.

Hopefully Allied Healthcare can get through a difficult time and continue helping the elderly in our society.

More details about the CQC report can be found here

About Deckchair Care

Deckchair Care are an independent, privately-owned and financed care agency. We help to look after the elderly in Cheshire and South Manchester.

Currently, we do not work with councils on a contractual basis because the fees that are available are well below what is needed to provide a sustainable level of care.

We pay our staff well above the minimum wage. The level of service we offer would not be possible  based on council funding alone.

However, we do work with private clients that receive council contributions to their care that they top up. We work closely with our colleagues in the council, social care and NHS departments to support clients that are referred to us.

Read more about our care service on our website here.

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Set up a National Care Service to protect our NHS

Home much does home care cost

Writing in the Guardian, Sonia Sodha’s article outlines how the NHS and Social care need to be joined up to save both.

“The founding principles of the health service must be extended to social care. Otherwise, the NHS will be run into the ground”

“.. the NHS embodies not just the principle that the affluent pay more than the poor through their taxes, but that the sick don’t pay more than the healthy”

“.. while it may be alive and well in the NHS, it’s glaringly absent from social care. If you’re unlucky enough to get cancer, you are covered by the NHS. Get dementia, however, and those with modest assets are on their own until they have spent much of their savings; even then, cuts to local authority budgets, out of which social care is paid, mean it’s increasingly hard to get state help.”

“We shouldn’t be expecting baby boomers to meet costs individually, but asking more affluent retirees to pay for the social care system through progressive taxation”

Read the full article here

https://www.theguardian.com/commentisfree/2018/jul/04/nhs-social-care-health-service

Find out more about Deckchair Care and their at-home care services

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Councils join demand for tax increases to fund social care services

at home care

A survey carried out by the Local Government Association (LGA), has found that the vast majority of local authorities in England say taxation is the only viable solution to the funding crisis.

There have been growing concerns after another delay to government proposals on resolving the crisis and complaints that funding for care has been diverted to the NHS.

“Properly funding social care and prevention services not only helps councils with overstretched budgets to protect care services for the benefit of those requiring them, it also helps to prevent further crises in the NHS and saves the health service a fortune by keeping people safe and well in their own homes, reducing the number of hospital admissions.”

Read the full article here

https://www.theguardian.com/society/2018/jul/01/tory-councils-call-tax-to-fund-social-care

 

For more information about private home care, please visit https://www.deckchaircare.co.uk