The Care Bill, Financial Information and Advice and Dementia Chris Horlick, Chairman PayingForCare Ltd

Awareness: expectations & understanding 34% of consumers believe that ‘Care is free like the NHS’ 1 Only 21% of self funders approach their Local Authority 33%+ of over 75s have not even discussed how they will pay for their long term Care 2 95% believe the social care system is difficult to navigate 3 Source: 1 ABI Q Mintel Feb Counsel and Care survey 2010

Awareness: expectations & understanding 76% have never heard of any care funding products 4 43% of all residents of care homes are self funders 5 800,000 people in the UK with Dementia 6 80% of people in care homes have dementia or memory loss 6 Source: 4 GfK NOP survey March Laing & Buisson 6 Alzheimer's Society

People with Dementia and self-funders in context 800,000 people with Dementia in the UK and 43% of all people self fund their care i Therefore 344,000 people with Dementia will self fund their care Fewer than 10% of all people in care get qualified financial advice ii 25% of self funders will entirely deplete their wealth to care costs iii Source: i Laing & Buisson – Care of Elderly People UK Market Survey 2012/13 ii Oliver Wyman survey 2009/10 iii LGiU Independent Ageing Council Support for Self Funders March 2011

People with Dementia and self-funders in context Greater longevity in care More in residential care Higher costs Greater need for financial advice Potentially less capacity to grasp the detail Powers of attorney 1

1 What does the Bill do? ClauseCommentary 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.

What does the Bill do? ClauseCommentary 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.

The Care Bill Cash Investment Insurance Mortgage / property The State “we don’t need to worry now because we will only have to find £72k - and the state will pick up the rest of the cost…..”

Clarity or Complexity: the £72k ‘Cap’ Weekly Cost Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10 TOTAL £700 Excess above Local Authority Rate £200 Local Authority Rate less Living Costs £269 Living Costs £231 Assumes £700 per week cost of care Assumes £500 per week local authority rate Key Self-funded for life Contribution limit, i.e. Dilnot Cap to £72K State Funding support

Immediate needs annuity Care Funding Plans

Value of investment year 1 £189,000£108,831 £176,190 £115,361 £161,404£122,282£144,463 £129,619 £125,175 £137,396 £103,332£145,640£78,709£154, : Invest £200k Property revenue Fees to pay = £23k esc 5% pa 2: Partnership Purchase Care Plan £97,329 How do you pay for Care? For illustration purposes only. The growth rates used assume the FSA mid rate of 6% net of any charges. It is assumed that the cost of care is paid for via withdrawals from investment and escalate at 5% pa verses purchasing an INA and investing the balance of £200,000. This forecast is not a reliable indicator of future performance and investments may grow at a higher or lower rate than that assumed. Higher returns than that assumed would mean that capital would erode more slowly. However, low investment returns would mean a quicker erosion of capital.

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……“my advice is you should get some advice”

Tools

PayingForCare enquiries “air-gap” Advisers Charities and 3 rd sector Residential care providers Local Authorities Care associations Domiciliary care providers Advisers Care/Health information services Enquiries in to PayingForCare from service users of: Enquiries out to qualified, experienced and regulated specialist care fees financial advisers General Advice Regulated Advice Care advocacy services Hospital discharge services On-going quality and outcome measurement

PayingForCare Partners include : Local

Thank you