Councils face £1.6bn annual bill for care as the number of people willing to deplete their wealth in order to ensure councils pay for their long-term care doubles, according to Partnership.
A recent Care Report, published by the specialist insurers, discovered the proportion of people who would be happy to reduce their assets below the £23,250 threshold in order to ensure councils pay for their long-term care has almost doubled in two years from 23% (2013) to 43% (2015).
This means that councils in England face a potential £1.6bn in costs, which will combine with the possible £1bn living wage bill and place a lot of pressure on local services.
Partnership’s report found that councils in the south east (£338m) and east (£211m) are likely to be the most impacted due to the high number of expensive care homes in these regions.
The report also found people living in the north east, the area with the highest number of people already claiming local authority support for care, are most likely to say they would spend their wealth and fall back on the state for support.
Jim Boyd, director of corporate affairs at Partnership explains: ‘While the second tranche of the Care Act with its associated implications has been delayed until 2020, councils still face a significant financial burden - which is set to grow considerably if even a third of these people deliberately deprive themselves of their assets. Spending or giving away your wealth before you need care might seem attractive but it does limit your options and means that you are likely to have far less control over your future than you may hope.
‘It could also be financially devastating for councils who are facing the financial impact of the introduction of the living wage on care budgets. While making wages more sustainable is naturally to be welcomed, budgets are already squeezed and local authorities are going to be carefully considering how to manage this amongst other demands on their finances. This is unlikely to lead to a satisfactory outcome for anyone.’
