PPP Press Release: PPP report proposes ‘Personal Asset Protection guarantee’ to fix social care crisis
19th July 2021
- Puts forward recommendations for a nationally funded, but locally delivered model as an alternative to national Dilnot proposals or local council tax
- Damian Green MP welcomes the conclusions
LONDON, July 19, 2021 – Public Policy Projects (PPP), the global policy institute, has today published a report that unveils realistic and transformative solutions in four key areas of social care policy: integration, innovation, infrastructure, and funding.
A succession of Governments have promised reform over the past 25 years, but they have not been able to reach a solution that is backed by Parliament and the electorate. ‘The Future of Social Care: Turning Rhetoric into Reality’ aims to fix that dilemma for the new Health & Social Care Secretary.
The proposed model for state funding is based on analysis of the Dilnot Commission, but with a different funding mechanism. This is because the Commission’s proposals were too complex, had an inherent geographical bias and required constant review of the asset and cap limits. Moreover, their implementation would have rendered the business model of many care providers obsolete by reducing the number of self-funding private payers who are a necessary part of a sustainable model.
The mechanism proposed is called the Personal Asset Protection (PAP) guarantee: when an individual has spent a certain percentage of their assets, they qualify for local authority support in the ordinary way if they meet the eligibility criteria. The authority will pay for a person’s long-term care costs once the person has spent that defined percentage of their assets on care.
The modelling on this report is based on a person being eligible for state-funded care when they have spent 30% of their assets on their care. At this level, the total net cost to the British taxpayer would be an increase in spending of just over £2 billion per annum, and the rate could be flexed depending on the will of the Government and on political agreement.
The advantages of the PAP system are that it is easy to understand and mitigates some of the inequities inherent in the Dilnot Commission’s proposals. This £2 billion is the minimum extra funding required, and many commentators think that the figure of £7-8 billion is a more reasonable figure to re-establish the level of access to state-funded services compared with before the financial crisis of 2008, to ensure appropriate remuneration for care staff and embed sustainability in the system.
The former First Secretary of State and Minister for the Cabinet Office – who at the time had responsibility for the Government’s social care policy – now Chair of the All-Party Parliamentary Group on Adult Social Care and Deputy Chair of PPP, the Rt Hon Damian Green MP, said:
“This report comes after 15 months of lockdown, during which many people have been deprived of the community support that would normally be available to them. As restrictions are eased from tomorrow, carers in the community and in residential facilities will be expected to ratchet up their levels of care to help people return to their normal lives.
“The proposals put forward in this paper are aimed at setting up a care system that is resilient and adaptable, supported by a funding system based on fairness and equity. I hope my Right Honorable Friend, Sajid Javid MP, reads, considers, and accepts PPP’s recommendations in full as he writes both the white paper and the plan for social care that is due to be published by the end of this year.”
Notes to Editors
The report draws on existing literature and pilot programmes as well as two PPP roundtables and a symposium on international models of care funding, where representatives from Japan, Denmark and the Republic of Ireland presented alternative systems of social care.
Participants in the roundtables came from local authorities, care providers, community innovators, technology companies and, importantly, users with lived experience of caring. The 21 case studies in this report were also sourced from the roundtable participants.
The report was produced in partnership with Casson Consulting and Care England. It is sponsored by Anchor Hanover, Hammond Care and Nourish Care; however, PPP doesn’t advocate on behalf of any organisation.