Political View: How will social care reforms work?
“Social care in the UK has been a growing scandal for decades”
New prime minister, Andy Burnham, received considerable praise for his recent speech at the Labour Party conference. It was a long speech but I want to focus on his stated ambition for a "new national care service" and how he suggests paying for it, Nick Sandford, Communications Officer for Peterborough Liberal Democrats.
Social care in the UK has been a growing scandal for decades. Time and again we see elderly people forced to sell their family home and spend their life savings just to get the home or residential care that they need in later life. Successive UK governments have promised change but delivered next to nothing. But in Scotland, when Lib Dems formed a coalition government with Labour from 1999 to 2007, we secured the introduction of free personal care funded through general taxation. .
A commission under Sir Andrew Dilnot recommended a scheme for funding social care In England but its proposals were never implemented. The Starmer government asked Baroness Louise Casey to look at the issue and produce recommendations but not until 2029. Burnham has now added some urgency by asking Casey to report by middle of next year and has committed to working with other political parties to come up with a detailed deliverable proposal.
Andy Burnham has proposed that the new social care service could be funded (in part) from what he called a "new contract with pensioners": Specifically that from 2030, pensions would no longer increase in line with average earnings but would instead be linked to either the increase in prices or 2.5%, whichever is the higher. This would change the so called "Pensions Triple Lock", which was introduced by Lib Dem pensions minister, Steve Webb, under the Coalition Government in 2010. Its purpose at the time was to boost the basic old age pension, which was at that time one of the lowest in Europe.
As a result many pensioners are now much better off, particularly those who qualify for the new higher rate pension introduced for retirees from 2016 onwards. It's notable too that successive governments have tried to encourage people to join workplace or private pensions, so as to make their own provision for retirement.
The "Pensions Freedoms" introduced again by Lib Dem minister Steve Webb in 2014 made workplace and private pensions much more flexible and generous tax relief continues to be available on pension contributions and lump sums taken on retirement.
Government has been intentionally vague about the detail of their intentions on reforming social care, as they wait for the results of the Casey review. Andy Burnham's commitment to action is welcome but we will need to see more detail on how the service is going to be funded and delivered locally or nationally. Currently social care for both adults and children is a massive drain on the resources of those councils, including Peterborough City Council, who are responsible for it. Lib Dems want to see more clarity going forward and will engage in the cross party talks that the Government has promised. It's vital that a new national care service has wide public and political support in order to ensure it can be maintained in the medium to long term.
Finally, just a plea to everyone locally who is interested in how our city develops over the next 30 years or so. The City Council has just launched its final consultation on its proposed new local plan. If you have views on where new houses should go or any other strategic planning issue, please go to the Council website and have your say. Comments received will be considered by an independent planning inspector who will recommend any changes needed before the plan is finally adopted.