Exclusive: Care Minister favours social care cap over new tax

Care Minister Caroline Dinenage has confirmed the government is predominantly looking to introduce a cap on the cost of social care 'rather than new taxes' in its green paper, in a bid to tackle the on-going crisis facing the sector.

In an exclusive interview with carehome.co.uk, the Minister dismissed the introduction of a new ‘over 40’ tax to help pay for social care, contrary to recommendations by a cross party group of MPs in a recent report from the Health and Social Care Committee.

When asked whether she saw any merit in introducing a form of social care insurance (as available in other countries like Japan), Ms Dinenage said:

“In developing the green paper, we are drawing on best practice of what works abroad to create a diverse, vibrant and stable English care market; but we also need to ensure that individuals are supported with the costs of their care, in a way that is fair to all generations – we’re therefore looking predominantly at proposals for a cap rather than new taxes.”

She added: “The present system can seem unfair as different conditions incur drastically different costs. There has to be some personal contingency in the system, but we also need an element of risk pooling. This is why we have been clear that the consultation will contain proposals on limits to the care costs that individuals face.”

Here's what else the care minister had to say.

Caroline Dinenage's Q&A responses

With no financial products to help people plan and pay for care, how can this be addressed?

“We’re very supportive of the private sector coming forward with offers to the public which complement the state offer. The green paper will include proposals for a cap on care costs, which financial experts have suggested is one of the key prerequisites for the market conditions to encourage this kind of product coming forward.”

What will be in the green paper?

“The green paper will cover the government’s proposals on a wide range of social care issues, including but not limited to ensuring the social care market is sustainable for the future and options on a cap on care costs. It will also build on our Carers Action Plan to consult on proposals to better support unpaid carers.”

Why has the social care green paper been delayed from July until Autumn?

“As the Health and Social Care Secretary has made clear, we want to integrate plans for social care with the new NHS plan that the Prime Minister recently announced. It doesn’t make sense to publish it before the NHS plan has even been drafted so we now intend to publish the green paper in the autumn around the same time as the NHS plan.”

What insights have you gained, after speaking to the social care expert group advising on the green paper?

“I have discussed the challenge of reform with the panel of independent experts, which includes the leads of the two most recent reviews on social care, Andrew Dilnot and Kate Barker. Building a sustainable care and support system will require some big decisions. But getting this right promises a better system that everyone can have confidence in, where people understand their responsibilities.”

Based on these insights, what do you see are the main challenges facing social care?

“Although 81 per cent of adult social care providers are rated as good or outstanding, we recognise that the social care system is under pressure – that is why we have provided local authorities with access to £9.4 billion in dedicated funding for social care over the three years. We also recognise that an ageing society means that we need to reach a longer-term sustainable settlement for social care.”

Do you think care homes should be required by law to take on a certain percentage of non-privately-funded clients?

“Cross subsidy, and its impact on care providers’ profitability was an issue raised in the recent Competition and Markets Authority (CMA) review of the care sector.

“I broadly agree with the CMA’s analysis about the sustainability of the market and their work is an important evidence base for improvement which will feed into the green paper. The green paper will consider the fundamental issues facing the care system, including the future sustainability of the market, capacity planning and market shaping responsibilities.”

How will you ensure the general public get the chance to choose the care home they want?

Whilst the government has no say in local care rate negotiations, councils have a duty under the Care Act to promote their local provider markets and make sure they deliver sustainable, high-quality services for all local people. We have worked with ADASS, LGA, the care sector and other partners to produce a wide range of guidance and support about commissioning, market shaping and contingency planning.

Do you have any personal experience of organising social care for a loved one?

“My grandmother was diagnosed with dementia in the early 2000’s, and I have seen first-hand the effect it had on her and the rest of our family. I wish I had understood more about dementia and the social care options available to her at the time, and that there had been better treatments and services to help her live well for longer.”

Will there be working tax credits for people caring for family?

“Our recently published Carers Action Plan included a number of actions to support carers to stay in or return to work, such as flexible working options and improved advice and support. The Department for Work and Pensions will also look at ensuring that benefits for carers (including Carer’s Allowance and Universal Credit) meet the needs of carers and support employment for those carers who are able to work.”

How much money would you like to see social care receive?

“During this Parliament, we have taken a number of steps to support the stability of the social care sector in England. This includes a substantial amount of new funding made available in this Spending Review exclusively for social care. In terms of future funding allocations, it is right that social care funding is agreed alongside along the rest of the local government settlement at the forthcoming spending review.

“However, I recognise that the health and social care systems are two sides of the same coin, and we will ensure that social care places no additional pressure on the NHS.”

How do you hope to improve staff recruitment and retention post-Brexit?

“We want to do more to promote social care as a positive career choice for people of all ages.

"This year, we launched a consultation with Skills for Care on the adult social care workforce with the aim of meeting the aspirations of current and future professionals so we can expand, enhance and diversify the care workforce in England. The forthcoming health and care workforce strategy will take these considerations forward, alongside the green paper.

“We’re also working across government to ensure we have enough staff post-Brexit with the range of specialisms needed. We’ve also announced an increase of more than 5,000 extra nurse training places from September 2018.”

The green paper, seen as a blueprint for how social care will operate in the future, was originally scheduled to be published last summer before being postponed to this July, only to be delayed again until this autumn. The green paper proposals will be subject to public consultation.