The Government that is committed to taking the difficult decisions and tackling the problems in adult social care head on, creating a sustainable adult care system that is fit for the future.
As you may be aware, the Government has announced a cap on care costs and more generous means testing for care, which will benefit all adults. From October 2025, the amount anyone in England will need to spend on their personal care over their lifetime will be capped at £86,000. Those who have assets below £20,000 will not have to pay anything for their care from their assets, however may still need to make a contribution towards their care costs from their income.
In assessing what someone can afford to pay for care, a local authority must ensure that in addition to the minimum guaranteed income, people retain enough of their income so they have sufficient funds to meet those needs not being met by the local authority. At present, some people face real financial pressures each week or month after paying for their care.
The 2023 Local Authority Circular, published on 9 February, sets out that the rates of the Minimum Income Guarantee will be uprated in line with consumer price index (CPI) inflation for the financial year 2023/2024. This is a welcome step as it means that people receiving means-tested support will be able to keep more of their own money. This uprating aligns with the Chancellor’s Autumn Statement announcement that benefits will be uprated in line with CPI inflation.
The funding in the package of reforms announced by the Government covers the costs to Local Government of implementing the charging reforms, including the cap, the increased capital limit, moving towards paying a fair rate of care and the associated implementation costs. £1.3 billion in 2023-24 and £1.9 billion in 2024-25 will be distributed to local authorities through the Social Care Grant for adult and children’s social care.
Of course, while absolutely vital, these changes alone will not solve the long term problems in the social care system. The Government worked alongside the social care sector to develop a Social Care White Paper to reform the way that social care is delivered, including support for disabled people.
Local authorities maintain the discretion to waive debts and uplift the Minimum Income Guarantee, in line with the ‘Care and support statutory guidance’. As part of the Local Government Finance Settlement, local authorities can use over £1 billion of additional resources for social care in 2022/23.