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

2. A few reminders – why this market 17th July 2013 Source: * Dilnot Report.** ONS data.***White Paper 2012 Progress Report on Funding 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

3. Tipping point “ Perfect storm in Social care” Huge increase in demand driven by demographics and longevity Huge reduction in available funds driven by comprehensive spending review demand funding 17th July 2013

4. The Dilnot Commission 17 th 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 17 th 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 17 th July 2013

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

8. 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 DH engagement 17 th July 2013

9. Clarity or Complexity: the £72,000 contribution ‘Cap’ Weekly Cost Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10 Excess above Local Authority Rate £200 Local Authority Rate less Living Costs £270 Living Costs £230 TOTAL £700 Key Self-funded for life Contribution limit, i.e. Dilnot Cap to £72K State Funding support Assumes £700 per week cost of care. Assumes £500 per week local authority rate 17th July 2013

10. The tariff effect post Dilnot Lower level of means test from £14250 to £17,500 post 2017 Upper level of means test today @ £23,250.00 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. 17th July 2013

11. What does the draft bill do? 17th July 2013 What the draft bill does Clause/sCommentary Embedding the principle of wellbeing 1Embeds the promotion of individual wellbeing as the driving force behind care and support Reflecting broader local responsibilities 2-7Provisions which focus on more universal, population-level activities, including general duties on councils to: Provide information and advice Promote the diversity and quality of local services Cooperate with the other local organisations, and work to integrate services to promote wellbeing Provide services to prevent, delay or reduce people’s need for care and support. Starting the care journey: assessments and eligibility 8-16Sets out the process of assessments for both those who need care, and carers. The clauses set out the eligibility framework, with regulations on what constitutes eligible need, and how decisions on support are made. They also leave open the option to establish national eligibility in the future. Clause 16 allows for regulations requiting councils to offer deferred payment on a universal basis. Clear entitlements to care and support 17-22These clauses seek to create a single route through which consistent entitlements to care and support can be established. The clauses also clarify the circumstances in which care and support may not meet needs – such as when the responsibility rests with another organisation.

12. 17th July 2013 What the draft bill does Clause/sCommentary Care planning and personal budgets 23-30These clauses set out what must happen after an assessment has been conducted, including the care and support planning process for agreeing how eligible needs will be met. As part of this process, the requirement of personal budgets to help people understand the cost of meeting their needs, and what public funding is available to them, will be part of the legislation. Moving between areas31-33These clauses deal with “portability” arrangements to ensure an individual's care and support is not interrupted by virtue of moving from one part of the country to another. A new framework for adult safeguarding 34-38Included in the draft bill is the first ever statutory framework for adult safeguarding, which sets out councils' responsibilities and those of the organisations they work with. Transition from children to adult services 39-44These clauses give councils the powers to assess children, young carers, and the carers of children, under the adult statute. Other provisions45-53A number of other important provisions are covered in these clauses including: An update of council powers to recover debts Restating and rationalising the provisions which focus councils and the NHS on reducing delayed discharges Allowing the Secretary of State to issue guidance to councils in relation to their functions in this bill Giving councils new powers to delegate some of their care and support functions to other organisations.

13. 17th July 2013

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

15. Thank you 17th July 2013 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.