Secretary of State Wes Streeting has announced that there will be a new review of adult social care, the third major review of its kind since 1999.
The review, undertaken by an Independent Commission chaired by Baroness Casey, will take four years to carry out, reporting in 2028.
In July the Chancellor Rachel Reeves cancelled the previous Government’s plans, due to come into force in October 2025, which would have capped any individual’s contribution to eligible care at £86,000.
Steven Cameron, Pensions Director at Aegon, said the company welcomed the new review. “As our population on average lives longer, providing and funding social care for our elderly is one of our greatest societal challenges. It’s a challenge which affects millions of individuals across the country – both those needing care and their families who support them. We need a solution which is widely accepted as fair across society and generations.
“Many people would like to plan ahead to make sure they have the funds to pay for social care should they need it in later life. But currently, there is no cap on how much individuals are expected to pay, meaning some people face catastrophic care costs which can wipe out lifetime savings and force the selling of the family home.”
He pointed out that to allow advance planning, “we need a deal which is stable over many decades meaning cross-party support is essential”.
However, Stephen Lowe, group communications director at retirement specialist Just Group, said that “the true challenge facing the Government is not in setting up a commission but in delivering the findings of one.”
“The public continues to be tantalised by promises of fixing the problem of social care and continues to delay making any financial plans while they wait for the Government to deliver reform. Our own consumer study into this topic, that’s run for longer than a decade, recently found that nearly half (47%) of over 45s are already delaying making financial preparations for later-life care until government plans for care are confirmed. That’s 12 million people crossing their fingers and hoping it won’t happen to them. More than half of over 45s say they are confused by government announcements on funding of residential care – that’s 13 million people hanging their hopes on a yet-to-be confirmed government policy.
“This latest announcement is likely to drive four more years, at the very least, of paralysis rather than planning. This paralysis has consequences. Millions of unpaid carers are making daily sacrifices to support elderly family members. Nearly a third (31%) of carers aged 45-75 tell us they have reduced their working hours or stopped work in order to be able to provide informal care to elderly family members, with an average loss to their salary of £6,400 a year.
“The longer a government takes to deliver a policy the deeper the crisis becomes, and the more vulnerable people and their families will suffer.”
Cameron added that any deal “is likely to involve the sharing of costs between the Government and individuals requiring social care, based on their ability to pay, but with an overall cap on personal contributions. For the Commission to be effective, it will need to be able to consider a wide range of options including increases in personal taxes, be that income tax or National Insurance, something which the Chancellor has ruled out for this parliamentary term. But with the second phase of the Commission’s findings not due until 2028, this raises the prospect of tax rises being discussed in the run up to the next Election.
“We very much hope Baroness Casey’s Independent Commission will draw fully on the extensive thought which has already gone into this challenge, from Andrew Dilnot’s proposals through to the previous Government’s confirmed but cancelled plans. After decades of delay, the millions of individuals affected are crying out for clarity on care costs to enable them to better plan for later life.”
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