The structure of social care is at risk from the depletion of self-funders' assets

Self-funders need access to better independent financial advice from local authorities to help manage the cost of their own care.

A new report has suggested that without effective financial support, the 57 per cent of older people who fund their own care could put the structure of social care at risk.

The report ‘Independent Ageing 2013’ comes from the Local Government Information Unit (LGiU) which surveyed councils across the UK to research how local authorities interact with, and support self-funders.

The findings comes as it was revealed that 24 per cent of self- funders deplete their assets to the extent that they have to fall back on state funding for care charges which cost local councils an estimated £425m in 2011-2012.

Dr Jonathan Carr-West, chief executive of LGiU, said: “Ensuring that self-funders receive the level of support that they need is beneficial for not only the individuals involved but the entire structure of social care. This report clearly highlights that while we have come a long way over the last two years, there is still much that councils, advisers and the financial services industry can do.”

From the report it was recommended that there is a need for local authorities to establish an independent financial information and advice service.

Access to financial information and advice need to be improved for older people by improving the content councils can offer on financial services.

The causes for the high amount of people turning to social services to help with funding has been explored by the Association of Directors of Adult Social Services (ADASS) president, Sandie Keene, who said: “A growing number of elderly people have relied on savings which, in the current economic climate have just not stretched as far as they planned, or accrued as much interest as they’d hoped. In some cases previous reablement services might not have been as successful as we’d all hope. While the fee levels in some care homes has bitten deeply into the resources of many older people, their families and carers.”

Ensuring that financial advice is regulated was another recommendation that was emphasised throughout the report, with Ms Keene agreeing ‘wholeheartedly’ that any financial advice needs to be regulated.

Chrisa Horlick, managing director of Care for Partnership commented on the report and said:“This report clearly highlights the role that regulated independent financial advisers can play in ensuring that not only do older people receive the support and information they need but also are able to live out their lives in a manner of their choosing.

“The current care system and the proposed Care Bill provides significant opportunities for advisers to develop their businesses and provide a more holistic service to their clients. We suggest that advisers seriously consider how they can become involved in the process.”