Published today (4 March 2009), Options for care funding: What could be done now? outlines a range of costed reforms that could make a big difference very quickly, especially to older people. The interim solutions would alleviate some of the pressures on those struggling under he current system which has widely been acknowledged as being in need of significant reform.

In a number of public consultations carried out by JRF and others, people repeatedly described the current system as ‘unfair, unclear and unsustainable’. In addition, JRF evidence shows that if current conditions were to be maintained, funding would need to treble (Hirsch 2006).

Information was used from Caring Choices, a 2007 public consultation carried out across England and Scotland through a wide partnership of voluntary and private sector organisations including the JRF and King’s Fund. This indicates that 90% of older people and their carers want clarity on what the state can offer in terms of funding the costs of care. The evidence shows that people would be able to better plan for their futures and would be more willing to contribute to care costs if the system was more transparent and easier to understand. The paper also outlines what each reform would cost.

Sue Collins, report author and JRF lead on its long-term care programme, said: “Everyone, including the government, agrees that the UK needs a new long-term care funding system. But it may be a decade before a new system is in place. These reforms could quickly make a difference to older people and their carers struggling to cope under the present system.”

The four proposed interim solutions are:

• Equity release, allowing older homeowners to pay for home-based care by deferring the costs until their home is sold. Cost: estimated £33 million a year
• Higher capital limits for care home fees to help those with modest assets by raising the ceiling that dictates whether an individual in a care home receives support from a local authority (from £22,250 to £42,500). Cost: £280 million a year
• Doubling the personal expenses allowance to give more dignity to people in care homes supported by local authorities who currently have just £21.90 per week to cover personal items such as clothes and shoes. Cost: £250 million a year
• Free personal care for all people requiring nursing care to remove inconsistencies between whether or not nursing care is funded by the NHS or the individual. Cost:  £212 million a year

These solutions, which draw on evidence and research collected by the JRF over a number of years, would help make the current system fairer and more focused on the individual and their particular needs. Each of these four proposals could be quickly adopted as affordable interim solutions.

Julia Unwin, Joseph Rowntree Foundation Chief Executive, said: “It is especially important in the current economic crisis that the government stays on track and commits enough resources towards creating a system that works. And it is vital that we continue to engage with people – not just the professionals but service users, carers and all of us who will be facing this issue in the future.”