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Care Reform, opportunity or Risk?

Care Reform, opportunity or Risk?. Chris Horlick. Managing Director Care, Partnership 17 th July 2013. A few reminders – why this market. Over 85’s have doubled since 1984 and will double again by 2030* 2 million individuals over the age of 50 today will reach 100**

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Care Reform, opportunity or Risk?

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  1. Care Reform, opportunity or Risk? Chris Horlick Managing Director Care, Partnership 17th July 2013

  2. A few reminders – why this market • Over 85’s have doubled since 1984 and will double again by 2030* • 2 million individuals over the age of 50 today will reach 100** • 10 million people alive today will reach 100** • 8 of every 10 people aged 65 will require social care of some sort during their lives*** This is structurally a great market to be in, and • Source: * Dilnot Report. ** ONS data. ***White Paper 2012 Progress Report on Funding

  3. Tipping point Huge reduction in available funds driven by comprehensive spending review “Perfectstorm in Social care” demand funding Huge increase in demand driven by demographics and longevity

  4. The Dilnot Commission 17th July 2013

  5. Recommendations • An increase in the upper threshold: • £23,250 to £100,000 • A cap on total individual contribution • Between £25,000 and £50,000 (suggest £35,000) • Individual contribution to hotel costs • Between £ 7,000 and £10,000 • Consistent portable assessment criteria • National eligibility criteria for Local Authorities 17th July 2013

  6. Jeremy Hunt’s Funding Announcement • Increase in the upper threshold from £23,250 to £123,000 (£118k) • Increase in the lower threshold from £14,250 to £17,500 (no change) • A lifetime cap on individual contribution of £75k towards care costs (£72k) • Individual contribution towards general living expenses of £12,000 per annum • All the above from April 2017 • Deferred Payment scheme from April 2015 17th July 2013

  7. Parliamentary timetable from here • Joint scrutiny committee reported to DH March 18th 2013 • Budget 20 March 2013 • Queens speech 8 May 2013 • Draft Social Care Bill introduced to parliament • 1st and 2nd reading in both Houses • Committee stage • 3rd reading • Consideration and amendments • Royal Assent • Complete passage through Parliament mid 2014 ?? 17th July 2013

  8. DH engagement • Steering Group on Information and Advice • ABI, Local Government, SOLLA, ILC. • Engagement with Financial Services • Consumers and Marketplace led by PWC • Pensions and insurance led by ABI • Housing and Finance led by Lloyds Banking Group • Rapid Review for Cabinet Secretary in May • Segmentation • Financial Products • Barriers and Enablers 17th July 2013

  9. Clarity or Complexity: the £72,000 contribution ‘Cap’ • Assumes £700 per week cost of care. • Assumes £500 per week local authority rate

  10. The tariff effect post Dilnot Upper level of means test today @ £23,250.00 Lower level of means test from £14250to £17,500 post 2017 Post 2016 extension of means test threshold to £118k The tariff at £1 per £250 of assets above the new lower threshold limit starts at ccirca £400per week if the tariff remains as it is today.

  11. What does the draft bill do?

  12. “….our advice is that you should take some financial advice”

  13. Thank you Partnership is a trading style of the Partnership group of Companies, which includes; Partnership Life Assurance Company Limited (registered in England and Wales No. 05465261), and Partnership Home Loans Limited (registered in England and Wales No. 05108846). Partnership Life Assurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Partnership Home Loans Limited is authorised and regulated by the Financial Conduct Authority. The registered office for both companies is Sackville House, 143-149 Fenchurch Street, London EC3M 6BN.

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