GREEN PAPER ON ADULT SOCIAL CARE : ANDY BURNHAM; CHAMPION TO THE ELDERLY OR GOVERNMENT PAWN?
SYMPONIA RESPONDS;
Wednesday 15th July 2009: In the House of Commons yesterday, Andy Burnham, Secretary of State for Health, unveiled the Government’s Green Paper for Adult Social Care and called for a "dignified debate" into the fate of Britain’s elderly.
Three proposals were put forward; the Partnership Service; a Voluntary Insurance Scheme and the "Comprehensive Model".
Janet Davies, joint founder and managing director of Symponia, the national umbrella group for care fees planning specialist advisers, comments on the Green Paper:
"We agree that the current system is unfair. We have worked with countless families who have gone through the trauma of dismantling the lives of elderly loved ones, eroding property and family treasures and watching hard-earned money literally disappear. Most of the people currently in care homes had high hopes sixty years ago when in 1948 the National Health Service was born.
Can Andy Burnham create a phoenix from the ashes of the current care system? Can The National Care Service really provide a level playing field for everyone, or will they realise that there just isn’t the money to keep the goals open at both ends?
The Big Care Debate sounds exciting. The thought of real people shaping the future may be seen as refreshing and pioneering by some. Others will see it as the public doing the groundwork for struggling ministers totally at a loss of where to go. Although the consultation period will finish in November, the White Paper isn’t going to materialise until next year, but when next year? There has to be a general election before the end of May; it is therefore extremely likely that the Government will campaign on the results from the Big Care Debate, making the views of the electorate difficult for the opposition parties to diss."
Commenting on the three proposals outlined by the Government, Janet Davies continues :
"None of these solutions removes any kind of lottery. Property prices will always be one step ahead on this one. The unpopular means testing will be scrapped but will be replaced by stealth, incorporating a different tier system dictated by the cost of the chosen care provider.
Partnership: There are merits. But the proposals state that the Government would fund between a third and a quarter of a person’s care bill, but which bill? Example; two identical people may both need care. One opts for care costing £650 whilst the other selects a care home with fees of £1,200. Surely the percentage paid has to be capped at the national average? Otherwise care home fees will rocket once again leaving those with low incomes without any real choice.
It is highly likely, that the contributions made by the Government (at whatever percentage) will simply replace two existing non means tested benefits, Attendance Allowance and Nursing Care Allowance.
Insurance: a good idea in principle, but which companies will offer the products and how will they be made available? Although pre-funded insurance plans were previously available, the take-up rate was woefully poor. It is vital that any product provider learns lessons from the past and makes future care plans both affordable and with realistic claims criteria.
Comprehensive: reverting to the objectives of a Cradle to Grave healthcare system is probably the least workable of all the proposals. It sounds great in principle, but the draft clearly says "everyone who can afford it"; who will decide this key point?
So, at what fee level will the state pay? Care costs can vary enormously, even within the same postcode. Whether the national limit is set at £650 or £1,200 per week will remain to be seen, but our instincts tells us it will be at the lower end.
What remains to be seen in the long term is whether or not Andy Burnham is the new Nye Bevan. Will he really go down in the history books as the guy who changed the lives of our elderly and vulnerable citizens or will he be remembered as a pawn in an elaborate chess game played by an increasingly weak and dying government?
If all goes to plan and Labour retains power next year, the new legislation will not be phased in until 2014. This means an awfully long wait for the people either in care now or those 400,000 who will face the need for care sometime before 2014. Sadly, many won’t see the "promised land" date arrive.
The one certain thing is that people paying their own care bills in the meantime should always seek the advice of a specialist financial adviser at the earliest opportunity. Money doesn’t have to drain away and appropriate steps can be put in place, which will mean that the families who can’t wait until 2014 can at least gain the peace of mind and reassurance that they have done their best to navigate the current system."
For further information on Symponia, please call 01789 774595 or visit www.symponia.co.uk