The delayed spending cap – next steps

The decision to delay, and possibly abandon, implementation of the lifetime cap on spending on care, is a retreat from a commitment that the Government made in its manifesto for the last Election. As a result, the risk of endlessly spiralling care bills remains and for as long as no cap is in place older people with assets will justifiably worry that they could be ‘wiped out’ financially if they are unlucky enough to need long term care. It is very disappointing that after all the efforts of the Dilnot Commission to come up with a solution so that older people could have peace of mind, this problem remains.

It should not be overlooked that the Government’s announcement also delays the implementation of two other important commitments.

First, although the Government’s decision not to implement the lifetime spending cap received the most attention, a second decision announced at the same time will actually adversely affect more people. It was that they would not be raising to £118,000 the maximum level of assets that are taken into account in deciding whether people must pay for their own care, as originally planned. Continue reading

A price cap on energy bills?

A woman reading her fuel billOn 17 July 2015, the Competition and Markets Authority (CMA) announced that millions of energy customers have been ‘paying too much for their energy bills’.

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Older people are still living in poverty and with growing inequality in later life

Our first blog post of the week looks at the findings from Age UK’s latest Chief Economist report. It focuses on the key economic aspects in the lives of many older people in the UK: inequality and poverty, and benefit take-up. 

Almost 60 years ago, Peter Townsend studied the lives of older people in East London and wrote:

The object of national assistance is largely to make up income, on test of means, to a subsistence level… A general definition of need is incorporated in its scale rates, and these are applied to individual circumstances, with certain discretionary disregards and allowances. The sums are intended to cover food, fuel and light, clothing, and household sundries, beside rent, and sometimes, after investigation, small additions are made for laundry, domestic help, or special diet. This definition of ‘subsistence’, on such evidence as exists, appears to be completely unrealistic.

You would be forgiven if, after reading Age UK’s latest Chief Economist Report, you concluded that not much has changed over all those years. Because, though the material aspects of the lives of older people in the country, whether in East London or East Belfast, have undeniably improved since then – thanks in a great part to the way initially ploughed by Eleanor Rathbone MP and the Old People’s Welfare Committee, Age UK’s predecessor, the current state of poverty among older people still looks dismal and grim as much as what it was like in Bethnal Green in yesteryear. Continue reading

Care cap delayed

The implementation of a lifetime spending cap on the amount an individual would spend on care was a flagship of the former coalition government’s social care policy, and a manifesto commitment for the present government. However implementation of the spending cap, originally intended for April 2016, has now been delayed until 2020. This means after the next election, so this delay raises considerable doubts about whether the cap will ever be implemented at all.

Age UK supported the proposed spending cap in principle and still does, but as we have said before, the devil is in the detail. For example the Dilnot Commission on long term care funding, which thought up the idea of the cap, originally set the cap at £35,000- £50,000, which was carefully calculated to ensure that the less well off would benefit. This objective was undermined by the government’s decision to raise the cap to £72,000.

Now that details of the scheme have emerged – with draft regulations being published only just before the election – it has become clear that the top priority must be to stop the social care system that millions of older people depend on from collapsing in its entirety.The most urgent priority arises from the current situation where cash strapped local authorities have restricted care to the point where over a million older people who are unable to carry out at least one vital activity of daily living without difficulty (for example using the toilet, getting dressed) receive no care whatsoever. Continue reading