Social care funding options: How much and where from?

The Health Foundation, May 2018

Report from the Health Foundation and Kings Fund that considers the costs associated with:

  • continuing the current social care system
  • introducing free personal care as exists in Scotland
  • raising the means test for receiving publicly funded care (the ‘floor’) and introducing a cap on total lifetime costs, as proposed in the Conservative Party manifesto for the 2017 general election.

It finds;

  • For the cap and floor model, cost above current pressures is £4.0bn in 2020/21 (taking account of the reduced spending on domiciliary care) rising to £5.8bn by 2030/31. The funding gap would be £5.5bn in 2020/21 and £11.9bn in 2030/31.
  • Free personal care would cost an extra £5.5bn in 2020/21 and £7.9bn by 2030/31. This would increase the estimated funding gap to £7bn in 2020/21 and £14bn in 2030/31.
  • The additional funding required for social care is large. To raise the funds in a sustainable way without cuts to other public services options include adding 1p to the main rate, higher rate and employers’ National Insurance contributions (NICs) by 2030/31, this would raise enough to fund the introduction of the cap and floor model. By means of winter fuel payments, this could be enough to introduce free personal care.
  • Additional revenue will need to be raised for adult social care services even without a change in the model. The question for government is whether, given that additional tax revenue will be required to protect the range and quality of care services, it would be better to aim for a sufficiently large increase in taxation to be able to provide a better model of care to those facing the burden of the cost.

Click here to view the full report.