25 July 2002 Number 19

Subject

Announcement by Alan Milburn, HealthSecretary on 23 July 2002 concerning care of the elderly.

Background

A package of proposals were announcedby Alan Milburn designed to relieve some of the pressure on the care homesector to comply with new regulation and to ease the concern felt over carehome closures. Key points included:

Local authoritieswill be able to pay higher fees to care homes (out of a total budget of 70million), to pay for better training for social care staff, and those homeswith a better environment for residents.

Followingassessment of care needs all councils will be obliged to offer payments directto all older people allowing them to make their own decisions about the carethey need.

An amended set ofenvironmental standards are to be issued for consultation making it clear thatthey are good practice to which all care homes should aspire rather thanregulation.

Mr Milburn arguedthat since average occupancy levels are around 91% (ideal occupancy levels incare homes should be around 90%) there only needs to be a modest increase inbed numbers from current levels.

Legislation willbe introduced in the next Parliament to ensure that rehabilitation services andall intermediate care services will be free and that local authorities will befinancially responsible for older people once they leave hospital.

BUPAs position

Thepackage of measures announced will not address the fundamental problem faced bythe care homes sector - that local authority fees are unrealistic andunsustainable. Our strongly held view is that central Government funds forelderly care should be ring-fenced.

The Health Secretarysaid in his announcement in November last year that an extra 300 million forsocial services would lead to fee increases in some parts of the country of 10percent. But in some areas of thecountry fees have risen by less than 1%.Overall BUPA estimates that on average fees have risen by 3.5% comparedwith a 10.8% increase in staffing costs.

Anyincrease in funding is to be welcomed, but we urge the Government to take theopportunity in the next Parliament to legislate to ensure that funding providedby central Government for long term care is ring-fenced by local authorities.This will mean funding reaches the care home sector for which itis intended.

BUPAlooks forward to working with Government on the amended set of environmentalstandards shortly to be issued. Whilstwe recognise that some of the standards were challenging for a number ofoperators it is important that the drive for higher standards is not merelykicked into the long grass.

Finally, we arepleased that a further 70m is to be provided by 2006 for training social carestaff. Greater numbers of qualifiedcare staff will improve services and enable a thorough review of the skill mixrequired in a care home.

Furtherinformation: MarkEllerby, Managing Director, Care Services, 0113 381 6259.