People aged between 40 and 65 should pay a new “Social Care Premium” to help plug a growing funding gap in the social care sector, MPs have said.

The recommendation comes from The Housing, Communities and Local Government and Health and Social Care Committees warns that the combination of rising demand and costs in the face of reductions in funding has placed the social care system under unsustainable strain. In its present state, the system is not fit to respond to current needs, let alone predicted future needs as a result of demographic trends.

Spending on social care needs to rise to: meet the funding gap for the provision of social care by local authorities in 2020,provide the additional funding to meet future demand; meet the care needs of everyone, whether critical, substantial or moderate; and to improve the quality of care delivered, which includes ensuring the stability of the workforce and care providers.

To ensure fairness between the generations, the premium, says the report, 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.

Clive Betts MP, Chair of the Housing, Communities and Local Government Committee, said:

“The social care system is in a critical condition and there is an urgent need for more funding both now and in the future to ensure people are properly looked after. While we have set out steps to ease the financial pressure on local authorities delivering the service, reforms at a local level will not be enough if we are to rise to the challenge of providing high-quality care for all those that need it.

We heard during the inquiry that people would be willing to pay more if there was an absolute guarantee that the extra money would go on social care. Given the huge funding gulf, the Government should now take the opportunity to build both a political and public consensus around the need for a new Social Care Premium to secure a fair and sustainable system in the long-term.

The Government must also consider social care in its wider context and ensure a proper joined up approach with other services such as public health and housing.”

Sarah Wollaston MP, Chair of the Health and Social Care Committee, said:

“We can no longer delay finding a fair and sustainable settlement for social care. Too many people are being left without the care and support they need and it is time for decisions to be made about how the costs are shared.

This report from MPs across the political spectrum also draws on the informed views of a Citizens’ Assembly in setting out our recommendations to Government. Doing nothing cannot be an option.”

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