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Government has ‘seriously underestimated’ cost of care proposals

Proposed government social care reforms could lead to “widespread closures” of homes and a shortage of beds, according to a report from the County Councils Network (CCN).

The report suggests that the government has “seriously underestimated” the cost of the social care proposals, which would require at least an additional £854m a year. Current funding proposals could cause a “severe sustainability risk” to care homes across the country, the analysis suggests.

Two aspects of the government’s reforms are examined: proposals to allow private payers (self-funders) to ask councils to arrange care on their behalf at lower local authority rates; and the intention to introduce a ‘Fair Cost of Care’, which aims to increase care fees paid by councils to make the care market sustainable.

CCN called for the government to bring forward local government funding in the Health and Social Care Levy to pay for the additional £854m a year required. Currently, councils will have to wait until 2025 to access full funding from the levy.

If no extra funding is forthcoming, CCN said the reforms should be delayed until 2025.

Martin Tett, adult social care spokesperson for CCN, said the government needed to provide a “substantial uplift” in funding to make the proposals workable. At current funding levels, he suggested, the proposals would lead to care home closures and a rationing of care.

“Councils will be left between a rock and a hard place – either by raising council tax to excessive levels and cutting local services, or by seeing widespread care home closures in their areas.”

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