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Tracey Funnell, business manager for Legal & General Retail Retirement Income’s Care Service, says that use of Care Concierge, included as part of Legal & General’s Group Income Protection (GIP) proposition, indicates a significant increase in the number of unpaid carers accessing care support and expertise at least two months ahead of need, instead of waiting until crisis hits
Encouragingly, our data shows that awareness of the need to plan ahead when it comes to anticipating the future care needs of loved ones seems to be increasing. Traditionally, it was the case that family members usually sought help around care options and funding only at the point of crisis; the day an elderly relative is released from hospital, for example.
However, we’ve found that over half (54%) of calls in to our Care Concierge service, from those looking for care on behalf of loved ones, are happening at least two months in advance of requiring it. Care Concierge, which is included as part of our Group Income Protection proposition, provides a direct line to care experts who have a wealth of knowledge on state funding and care options. They will also signpost, if required, to specialist Legal & General Retail Retirement advisers or independent financial advisers who are fully accredited members of the Society of Later Life Advisers (SOLLA).
This advance planning represents a very significant change, especially when you consider that the number of self-funders who had run down their savings to almost nothing increased by over a third (37%) in 2020.*
It’s difficult to say for sure what is behind this proactivity, but it’s likely to be due to a combination of things. For example, there’s been a lot of government and media focus on social care of late – particularly around the social care reforms that have now been postponed to October 2025.**
Of course, increased awareness and action could also be largely due to personal experience and life changes experienced during the pandemic. Carers UK estimate that the number of unpaid carers increased by 4.5 million at the height of the pandemic to 13.6 million.***
With many full-time working carers now being encouraged to commit to hybrid ways of working post pandemic instead of home working, the juggle of caring and work is made ever harder, forcing the need to consider available support options, whether at home or in a care home.
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The essential lowdown: Social care reform – what intermediaries and clients need to know
- What does the latest social care reform look like? In September 2021, the government set out plans to reform adult social care in England. It said that £5.4 billion would be used to find the reforms between 2022/23 and 2024/25. The initial plan was for this to be funded by a new tax, the Health and Social Care Levy (raised by increasing National Insurance by 1.25 percentage points for employers and employees). But in September 2022, the then government announced the levy would be cancelled, but that funding for social care would remain unchanged. In the Autumn Statement 2022, the Chancellor announced that the reforms would be delayed for two years. Source: https://commonslibrary.parliament.uk/research-briefings/cbp-9315/
- What’s the current issue for self-funders? Currently, if an individual has assets above the £23,250 means test threshold they will have to pay for care themselves, rely on family or friends or go without care. This threshold still applies if they’re assessed as needing care in their own home, but the value of their home is no longer taken in to account). If they do pay themselves, there’s no limit to how much they might have to pay over their remaining lifetime. The average cost of a care home in England is around £35,000 a year and some people spend many years in care. In 2011, the Dilnot Commission estimated that 1 in 10 people might have to pay more than £100,000. Source: https://www.kingsfund.org.uk/publications/government-proposals-social-care-system
- How will the government’s proposals change things? Instead of having to pay for all their care if their assets are above £23,250, it is proposed that from October 2025 an individual would only pay for all their care if their assets were more than £100,000. Also there will be a limit – a cap – on how much they are expected to pay over their lifetime. This cap is due to be set at £86,000. Once an individual reaches that amount, the government would contribute towards their care related costs. Source: https://commonslibrary.parliament.uk/research-briefings/cbp-9315/
- Any caveats? The cap would only cover the cost of care up to the limit set within the individual’s Independent Personal Budget. And, if receiving home care, it would only cover the number of hours their local authority thinks they need at the price it is willing to pay. And it would not cover any accommodation associated costs in a care home (meals etc). All these figures will change over time with inflation. https://www.kingsfund.org.uk/publications/government-proposals-social-care-system
- The impact on employers and employees? A recent report by Aon said that even with the new level of funding proposed by the government – and recognising some of the caps and limitations on the levels of support available – there will be millions of UK workers underserved. The report identified that an increasing number of staff with caring responsibilities and the rising average life expectancy are creating issues in the workplace, impacting absence, productivity, employee health, diversity and inclusion and retirement. Source: https://www.aon.com/unitedkingdom/employee-benefits/resources/employer-guides/the-aging-population-time-to-take-notice.jsp
- What is Legal & General’s Care Concierge service? Care Concierge was launched by Legal & General Group Protection in January 2021. It provides a direct, confidential, line to care experts – all of whom have backgrounds in nursing, social care, care home agencies and quality assurance; all of whom have decades of experience in the care industry between them. They will help individuals navigate the state funding system, NHS and social care services, as well as discuss care options. Additional services include a personalised and comprehensive report of local providers that match individual requirements.
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*https://www.ageuk.org.uk/latest-press/articles/2020/07/a-year-on-from-the-pms-pledge-that-no-one-would-have-to-sell-their-home—14-people-are-wiped-out-financially-by-care-bills-each-day/#_edn2
** https://commonslibrary.parliament.uk/research-briefings/cbp-9315/
***https://www.carersuk.org/news-and-campaigns/press-releases/unpaid-carers-worried-about-the-financial-strain-on-top-of-continued-reduced-access-to-support