The Housing, Communities and Local Government and Health and Social Care Committees’ joint report calls for a sustainable funding solution for adult social care.
The report calls for the introduction of a ‘Social Care Premium’, either as an additional element of National Insurance or with the premium paid into dedicated not-for-profit social insurance fund that people would be confident could only be used for social care.
To ensure fairness between the generations, the premium should only be paid by those aged over 40 and extended to those over the age of 65, with the money being held in an independent, dedicated and audited fund to help gain public trust and acceptance for the measure.
Individuals and employers should pay a new contribution into a dedicated fund set aside to help pay for the growing demand for adult social care and implement funding reforms, with the current system ‘not fit to respond to the demographic trends of the future’, say report into Long term funding of adult social care report.
The report by the cross-party Committees describes the social care system as “under very great and unsustainable strain”. Ahead of the Government’s Green Paper, which is now expected in the autumn, it highlights the urgent need to plug a funding gap estimated at up to £2.5 billion in the next financial year, before introducing wider funding reforms at both a local and national level to raise extra revenue with a long-term aspiration of providing social care free at the point of delivery.