Embargoed until 0.00 on 28/2/2011
View the report here.
THE report ‘Independent ageing: council support for care self-funders’* which is being launched in The House of Commons on I March, calls on councils to take action to guard against higher care costs and highlights the lack of appropriate financial advice for those who fund their own care in later life, leading to an annual cost to councils of nearly £1billion per year in England as self-funders fall back on the state.
Significant findings from this research include:
• 61% of respondents did not know how many self-funders in their authority fell back on state care
• Respondents underestimated the cost of people falling back on state care by as much as 50% compared with independent estimates of up to £1bn a year
• Only 3% of councils told LGiU that they provide a list of independent financial advisors who could give advice about care funding products.
• 25% of self funders ultimately fall back on state funding
The report, by local democracy think tank, Local Government Information Unit (LGiU), highlights that despite rising care costs, very few councils point residents towards appropriate financial advice; ‘Independent ageing’ recommends that councils act now to make immediate savings and to create a sustainable care system for the future.
Commenting on the report, Chris Horlick, Managing Director, of Care at Partnership, said:
“We welcome this report by LGiU which calls on councils to help self-funders to avoid exhausting their own resources by taking a preventative approach.
“Self-funders, those people with assets (including property) of more than £23,250 in England, are among the most over looked and neglected in the care system. The fact that 61% of respondents did not know how many of their own self-funders fell back on state care – highlights this point.
“In 2009 53,000 people entered residential care, yet only 7,000 received appropriately qualified financial advice. As the report shows that only 3% of councils told LGiU that they provided a list of appropriate financial advisers, it is hardly surprising that significant numbers of self-funders deplete their capital prematurely, causing huge stress to those people and their families.”
Report author Jonathan Carr-West commented: “This report recognises that councils are in an unenviable position.
“On the one hand, demand for adult social care is rising fast. An additional 1.7 million people will need care and support in 2030. Council budgets for adult social care would be under even more pressure were it not for the contributions that individuals make to their own care. It has been estimated that an average of 41% of people entering residential care each year self-fund. 25% of them ultimately fall back on state funding.”
Intervening early with information and advice, in particular by signposting self-funders to appropriately qualified financial advisors, will help individuals make better decisions about funding residential care. This can be implemented at very low cost – yet the report highlights that only 3% do, despite the fact that is estimated to cost local authorities nearly £1 bn each year in England.”
Ends
More information
*‘Independent ageing: council support for care self-funders’ focuses on the cost to councils of self-funders falling back on state funding for residential care. It draws upon original research including a survey of chief executives, leaders, finance directors, adult services directors and cabinet portfolio holders in the 174 authorities in England and Wales that are responsible for care.
If you would like an embargoed copy of the report or would like to speak to the report author please contact Dan Garfield, Public Affairs Director, LGiU on 0207 554 2803.
Media Enquiries:
Jim Boyd
Director of Corporate Affairs
0797 345 8675 / 0845 108 7240
Partnership
jim.boyd@partnership.co.uk
David Andrews Senior Consultant – Director
07941 255855 / 01273 725288
David Andrews Media Ltd
david@davidandrewsmedia.co.uk
Partnership
Partnership is a specialist provider of financial solutions for people with health/ lifestyle conditions, as well as those suffering from a serious medical impairment. Partnership was the first company in the UK to offer higher retirement incomes by taking account of people’s health and lifestyle conditions. It has been a consistent innovator developing this sector by championing the needs of those with even modestly reduced life expectancies.
Partnership has led the way in providing products designed specifically for individuals whose health and lifestyle is likely to result in a reduced life expectancy. Partnership is expert in the field of medical underwriting and has a unique in-house data set.
Partnership believes that its years of accumulated data and knowledge gives it a unique understanding of the impact of health and lifestyle choices on longevity. This, in turn, enables it to offer the most accurate assessment of a client’s life expectancy and therefore offer the fairest price to them. Partnership has a comprehensive offering in the retirement sector and offers a complete range of Enhanced Annuity solutions, from clients who smoke or have minor health impairments, through to serious conditions such as cancer.
Partnership is the largest provider of annuities for Long Term Care funding in the UK, with 80% of the market, and also offers specialist Protection solutions for clients who have been declined cover from standard providers. Partnership offers a firm commitment to supporting advisers in growing their business.
Partnership won the 'Long-term Care Provider' award at the 2009 and 2010 Health Insurance Awards, and also won the 2010 Simply Biz ‘Annuity Provider of the Year’ award. It has been awarded a 5 Star rating at the prestigious Financial Adviser Service Awards, was judged “Best Enhanced Annuity Provider” at the 2010 Moneyfacts Awards and achieved an ‘eee-rating’ (the highest possible) for its web-based enhanced annuity platform in the 2010 e-Excellence Awards. This year it has been awarded the Professional Adviser Best Annuity Provider Award. www.partnership.co.uk.
About LGiU:
The LGiU is an Award Winning Think-Tank. Our mission is to strengthen local democracy to put citizens in control of their own lives, communities and local services. We work with local councils and other public services providers, along with a wider network of public, private and third sector organisations. Through information, innovation and influencing public debate, we help address policy challenges such as demographic, environmental and economic change, improving healthcare and reforming the criminal justice system. We convene the national Children's Services Network and are the host organisation for Local Energy ltd and the Centre for Public Service Partnerships – CPSP@LGiU. To find out more visit our website www.lgiu.org.uk