Home England government New funding for local authorities to prepare for the tariff reform

New funding for local authorities to prepare for the tariff reform

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  • £15.5m will help local authorities prepare for adult social care pricing reform in October 2023
  • Adult social care reforms will change the way social care is paid for and protect people from unpredictable care costs across England
  • Pricing reform is part of wider welfare reform which will reduce pressure on the NHS, helping the government continue to tackle Covid backlogs

More than £15million will be paid to local authorities across England today (Wednesday June 15) to help them implement new social care pricing reforms to end the unpredictable cost of care for the public.

The introduction of the tariff reform, which will include a cap on the cost of care and a more generous means test, will lead to an increase in the demand for additional assessments and will force local authorities to upgrade IT systems to record and maintain care accounts.

The £15.5m will be shared by local authorities to hire additional staff, prepare their workforce and recruit dedicated IT staff to oversee the implementation of care accounts.

This is the first part of the funding for local authorities, and further support will be made available later to build capacity and support the implementation of technology that can support pricing reform.

Additional funding of £2.9 million will also be distributed to pioneer local authorities to cover the costs of implementing pricing reform early. Pioneer Authorities are areas that have been selected to ensure that all of the information, evidence and lessons learned from this initiative will be useful to providers and authorities to support roll-out in all parts of England.

Social care staff have worked incredibly hard during the pandemic and wider social care reforms will strengthen the workforce, enabling them to provide greater support in the community – keeping people out of hospitals and reducing pressure on the NHS.

Wider social care reforms will better integrate health and care systems, support earlier discharge from hospitals in the community and free up hospital beds to increase NHS capacity and tackle Covid backlogs.

Minister of Care, Gillian Keegan said:

Our pricing reforms will mean that no one will have to face unpredictable and often catastrophic care costs and this new funding will help local authorities implement these vital changes.

We are committed to providing equitable, high-quality care, and this is the start of our journey of reform, creating the next step to realize our ambitious plans.

We are working closely with local authorities, providers and care recipients to ensure a smooth transition to the new system to end the unpredictable cost of care for the public.

The Health and Social Care Levy will raise more than £5.4billion for adult social care reforms, including £3.6billion to reform the way people pay for their health care pricing reform social care to ensure the new system is fair and accountable, balancing government support with the need for people to be responsible for their future care needs.

It’s part of wider reforms backed by £39billion to eliminate Covid backlogs and reform social care, helping people access care when they need it in the community and reducing pressure on the NHS.

Adult social care pricing reform includes a new lifetime cap of £86,000 on how much anyone in England will have to spend on personal care, as well as a more generous means test for financial support from authorities local.

The transformed social care pricing system, which includes a significant increase in state support, will apply to people in residential and home care. This will ensure that adult social care is fair and accessible to all who need it, and will protect people from unpredictable care costs.

From October 2023, no one will start receiving care will pay more than £86,000 in their lifetime, and no one with assets of less than £20,000 will have to contribute from their savings or of his property assets – to £14,250. Anyone with assets between £20,000 and £100,000 will be eligible for means-tested support with an upper limit greater than four times the current limit.