Paying for care and support: Dilnot Commission makes recommendations

Established in July last year, the Commission on Funding of Care and Support was tasked by the Coalition Government to review the funding system for care and support in England. One year on, this independent body, chaired by Andrew Dilnot (an economist and Vice Chancellor at the University of Oxford), has made a series of recommendations which, if adopted by Government, will see the way we save and pay for care radically change; in particular, drawing on any equity in our homes and taking up insurance to cover the cost of any long term care needs.

While not housing specific, the Commission's finding recognises the importance of housing and housing related services that can prevent or delay more costly care in later life. There is mention of Extra Care Housing as a potential alternative to residential care but the Housing LIN considers that both mainstream and specialist housing can be an effective part of the solution. This could be achieved with a more strategic approach to planning for housing with care needs of older people whereby local councils, developers, providers and older people themselves begin to identify and design new, attractive and affordable housing solutions across tenures that can attract people to 'downsize' from larger rented and owner-occupied homes and meet their lifestyle aspirations, including access to personal care and support for independent living. References are also made to making adaptations and improvements to existing properties and the use of telecare that can aid recovery and rehabilitation. However, the key message is that individuals should pay the first £35k of their care in old age and be encouraged to take out insurance to cover the cost while, at the same time, offering a more generous means test for those people who can not afford it.

With an ageing population and the cost of care to be over 21% of GDP by 2050 (as recently reported by the OECD), the Commission recommend that more personal and state investment is required to meet our care funding shortfalls. With regard to the latter, it suggests that as many as 800,000 people who need care but do not receive it from the state. Moreover, at a time of cuts in public spending a further £3b is needed to fund the care and support of the most vulnerable older people. There is therefore a strong case for looking into how housing may also be part of the solution and provide ways in which people can live well for longer in their own homes too.

For full details, go to: http://www.dilnotcommission.dh.gov.uk/2011/07/04/commission-report/ (opens new window)