Government care reforms to ensure councils pay providers a fair cost for care are expected to cost considerably more than the government’s estimates according to industry analysis.
The estimated cost in the DHSC’s impact assessment is £19 billion over 10 years and it is claimed this under states the cost because many more people would become eligible for means-tested than the DHSC has assumed.
Martin Green, chief executive of Care England, said the report “demonstrates that the government has significantly underestimated the funding required by a phenomenal amount”, putting additional pressures on an “already overburdened sector”.
In response, a DHSC spokesperson said, “Modelling has been through extensive peer review and we are confident in the department’s estimate for charging reform. We’re working closely with local authorities, providers and care receivers to deliver a smooth national transition into the new system.”
Source: County Councils Network and Newton.