At the moment there are two types of care clients - those who are funded by state (council) and those who fund themselves privately.
Private clients have always paid more than councils do. Providers need that subsidy to survive. 1/4
But today the government brought into force legislation which will allow private clients to ask councils to arrange their care for them instead, at the cheaper council rate.
Great for private clients, dreadful for providers. 2/4
The stark matter is some councils essentially pay under the rate providers need just to break even. Without private clients topping up, those providers will go under. Many already are. And no chance of a wage rise for staff if margins are cut even more (currently about 2%). 3/4
So we face the dangerous prospect of even more carers leaving due to poor pay, or even more providers going under because they can’t break even. That would restrict the availability of care even further, with many thousands already waiting months to find the care they need. 4/4
The @ukhca has elaborated further on this in their concerned reaction to today’s announcement:
Important clarification from No 10 tonight (bear with me this is even more complex)…
Plan is that Govt will create a new flat rate - somewhere between council & private rate so clients end up paying same. They say this means private providers don’t lose money, it averages out.
Will try to get a more clarity on this tomorrow as it continues to cause consternation among care sector tonight… which has always been a mind-bogglingly complicated system.
On this, Health Secretary just said the current system of private clients subsidising council clients “simply isn’t fair”. He says the aim is to raise the rate paid by councils.
Here’s the concern I was talking about last night from care providers who are now coming out publicly to express their worry about the new flat rate model for care.
NEW: Oxfordshire hospitals are said to be in a "critical position" tonight due to surging demand and an inability to discharge patients back into the community due to a shortage of care staff.
John Radcliffe hospital has had no space for 24 hours and cannot offload ambulances.
Hospital is currently in Opel 4 (highest level of alert). They say 20 people arriving per hour is usually considered bad, but they are receiving 30-40 per hour.
There is no ITU capacity and all elective surgery has been cancelled. Situation said to be similar across the region.
An urgent appeal has gone out to care providers to help with discharging patients. But as we reported last week, providers are at full capacity due to staff shortages. In fact, 30% are handing clients back because they can no longer care for them. All increases pressure on NHS.
BREAKING: The government is today launching a consultation on making Covid-19 and flu vaccinations compulsory for *all* health and social care workers.
Care home staff must already be Covid jabbed by 11th November. Now this could extend to NHS staff and carers in the community.
Care sector is already facing its most chronic staffing crisis in history. Care homes expect thousands to quit due to compulsory jabs. Now they might not be able to move to NHS to escape the jab, but care in the community has been really worried about this coming in for them too.
For many it will be inexplicable why anyone in a health / care role would refuse a vaccine. Vast majority - 92% of NHS staff - have had first dose. But fact of the matter is some still don’t want it.
When care sector is already stretched, they can’t afford for anyone to leave.
1. Cap of £86k 2. Floor of £100k 3. 1.25% hike NI 4. Raises £36bn 5. BUT vast majority goes to NHS. Only £5.4bn for care. 6. Of that £5.4bn, £2.5bn funds care cap. Leaves £2.9bn over 3 years for reform. Care leaders furious.
Care sector was briefed on the plan this morning. They say there’ll also be an extra £500m for workforce training but worry this will do nothing to raise wages, which they feel is the main factor behind the staffing crisis.
“Feeling depressed”, one source tells me.
Bit more detail on £100k floor:
Not quite a floor as costs will be tapered between £20k-100k so individual still contributes but state helps.
But main reaction from care sector is about overall funding here - falls way short of what they feel they need and seems more about NHS.
Hearing PM will announce a plan that very closely takes on the Andrew Dilnot proposals from 2011.
No great surprise, but:
1. Cap of around £80k, meaning you pay no more
2. Floor of £100k, meaning your savings won't ever deplete beyond that (important for less well off).
Politics is a funny business... this plan has been around for a DECADE.
How many houses have been sold in that time? How many people have died with little inheritance to pass on? How many have missed out on care because of underfunding? How many carers have been overworked?
Plan arguably benefits the better off in 2 ways:
1. Their homes are worth more, leaving a nice inheritance for relatives.
2. They'll pay less national insurance as a proportion of their income than the lower paid.
A good policy for the home counties. Less so for the red wall?
All eyes on tax rises today, but discussion around care should be focused on three problems:
- the lottery of life that sees some pay thousands for care and others pass savings on to kids
- the hugely variable quality of care
- the low pay of staff undervalued for decades
Anyone in doubt of the urgent need for funding (without it being siphoned off for the NHS) should listen to those on front line who are absolutely broken.
Here is our report from Thursday detailing the unprecedented staffing shortage in the sector.
Staffing crisis partly requires addressing problem 3, with thousands of carers still paid below the living wage.
That in turn requires more funding of the sector so councils can up their rates.
This is what it feels like to be a carer on £9 an hour: