Government plans will benefit NHS and create opportunities for dementia research

The Chancellor of the Exchequer announced a number of plans to benefit health and care services as part of the Autumn Statement.

George Osborne announced plans to invest a further £2 billion into the NHS in England during 2015 and 2016 as part of a £3.1 billion investment plan for the NHS.

The funding will be shared with £1 billion being invested in GP practices in England, £15 million being spent on research into dementia in addition to the £66 million already pledged for dementia research.

Chief executive of the Alzheimer's Society, Jeremy Hughes, said: “David Cameron is committed to making dramatic progress towards a cure for dementia by 2025 so it's encouraging to see him turning these words into action through continued global and national leadership.

“This announcement is significant given that investment in this area is so crucial. The Alzheimer's Society continues to fund vital research and work with the government to tackle dementia."

In the next five years, £150 million will be spent on supporting young people with eating disorders, a further £200 million will be invested in patient care and £1.5 has been allocated to spend on local NHS services.

In response to the Autumn Statement, Rethink Mental Illness charity, welcomed the announcements and said improvements to mental health services are needed as a priority.

'Historic under-investment in mental health'

Mark Winstanley, chief executive of Rethink Mental Illness, said: “We’re delighted that today’s statement confirms that the NHS Mandate will commit to equally valuing people’s mental and physical health, but now we urgently need to see that reflected in how funding is spent across the NHS.

“This is a golden opportunity for the NHS to address the historic under-investment in mental health care. Mental illness accounts for 23 per cent of the national impact of ill-health, but currently receives only 13 per cent of the NHS budget.

“Everyone should be able to get good quality care for both their mental and physical health, no matter where they live or what their circumstances are. But that will only be possible if the right services are in place and people can access them quickly.

“The Chancellor and Prime Minister say this new funding will go directly to ‘frontline’ NHS care. That should mean, for example, making sure that people with severe mental illness get swift access to potentially life-changing talking therapies. It should also mean ensuring people can access treatment at the earliest possible opportunity, to improve their chances of recovering.

“As George Osborne says that you can’t have a strong NHS without a strong economy. Given that one in four of us are affected by mental illness, we can’t have a strong economy without making everyone’s mental health an absolute top priority.”

Reduction in the cost of care

Independent Age welcomed the benefits to the NHS that the Autumn Statement will bring as well as the extensions to National Insurance Contributions Employment Allowance, which will benefit disabled and older people who employ care workers and result in them seeing a reduction in cost of care.

The chief executive of Independent Age, Janet Morrison, said: “We warmly welcome the new announcements regarding extra money for the NHS. However without a greater investment in social care, which has suffered huge cuts over the last four years, much of the benefit of the extra money will be lost as elderly patients are stuck in hospitals waiting for care home places or social care support in their homes.

“The arguments between councils and the NHS over spending the Better Care Fund demonstrate that there is still a huge distance to go before health and social care are recognised as one system, requiring joined-up solutions.

“With the implementation of the Care Act only months away, the Government must step up to ensure that there is enough funding available for councils to carry out the new law effectively. The Autumn Statement has missed the chance to respond to the huge pressure already on councils."

Ms Morrison spoke further about the benefits of the proposed abolition of National Insurance Contributions for apprentices under 25, she said: “Since the social care sector is one of the biggest employers of apprentices, it’s good news that the National Insurance contributions on earnings up to the upper earnings limit for apprentices aged under 25 will be abolished.”

The Autumn Statement also featured benefits for spouses who will be able to inherit their partner’s individual savings account (ISA) in the event of their death.

Prior to 3 December 2014, savings could not be passed on to a spouse even if the money was saved together resulting in 150,000 people losing out. These changes will mean that spouses and civil partners will be able to invest into their own ISA in addition to their spouses.

Mark Stopard, head of product development at Partnership, commented: “Finally, we welcome the new tax-free ISA inheritance decision and the upcoming confirmation around Pensioner Bonds. In the current low interest environment, the opportunity to leave your ISA savings to your spouse tax-free is excellent news as is the opportunity to gain market-leading rates on bonds specifically designed for the over-65s – many of whom have saved their whole lives.”

Acknowledgement of important services

Furthermore, the Autumn Statement included plans to ensure that Hospices, search and rescue services and air ambulance charities will be eligible for VAT refunds, in acknowledgement of the important service that they provide.

Charity Hospice UK celebrated the announcement which is estimated to be worth £4 million annually, chief executive of Hospice UK, David Praill said: “We are delighted the Chancellor has acted to close the VAT gap faced by charitable hospices which, unlike NHS providers, have been unable to reclaim VAT on many non-business supplies.

“This positive change will help relieve the considerable VAT burden on charitable hospices in the UK, enabling them to invest charitable funds in the delivery of front line care and help them reach more terminally ill people and their families.

Mr Praill continued: “It is only right that there is a level playing field between local hospice charities and other providers of palliative care. This rebate scheme recognises the unique contribution of charitable hospices to the health economy and also the invaluable support of local people who give their time to support hospices through fundraising and volunteering.

“The announcement comes as hospices face increased demand for their care, as a result of the increasingly complex needs of Britain’s ageing population.”