WRITTEN STATEMENT
BY
THE WELSH GOVERNMENT
TITLE:
Update on Reform of the Arrangements for Paying for Social
Care and Support
DATE:
6 May 2015
BY:
Mark Drakeford AM, Minister for Health and Social Services
Members will be aware of the programme of work being undertaken to introduce further
reform to the arrangements for paying for social care and support in Wales. This is to
make those arrangements fairer and more sustainable than at present. I now wish to
update you on this reform.
The independent research study we commissioned last year, conduced by LE Wales, has
been completed with the production of a second report. This second report identifies and
appraises a set of possible options to introduce further reform of the arrangements for
charging for both residential and non-residential care and support. These options cover
both potential reform of individual aspects of the existing arrangements, as well as more
fundamental reform of the arrangements as a whole. Any reform which might be
introduced would take place in the context of our initial reform introduced in 2011 whereby
those receiving homecare and other community based care and support cannot currently
be charged more than a maximum charge for this of £60 per week.
The Paying for Care Stakeholder Advisory Group, which was reconvened last autumn, has
also concluded its considerations with the production of its own report. The Group
considered a range of issues around the current charging arrangements and how these
impact on those who are required to pay for their care and support. It also considered and
provided its views on each of the potential options for further reform identified by LE
Wales.
I have now had the opportunity to consider both reports in detail. I am impressed with the
level and quality of the information and findings presented within each and would like,
therefore, to put on record my gratitude to those involved in producing them. Both provide
an evidence base to inform our thinking on the nature reform should take. I am publishing
both reports, which can be accessed at:
http://gov.wales/topics/health/socialcare/care/?lang=en
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In considering the potential options for reform, however, there is a need to be clear on two
key related issues which have the potential materially to influence the nature of the reform
we take. These are:

the uncertainty over the detail of the reform which may take place in England. The
current UK Government has consulted on draft regulations and guidance to implement
reform it wishes to see introduced from April 2016 but has made no announcement of
the outcome of this in advance of the general election. Consequently, there remains
uncertainty as to what reform may be introduced in England and what consequential
funding may flow to Wales as a result of new funding being provided for this. This is
important given the substantial funding involved with the potential reform options LE
Wales identified;

the future of welfare benefits and pensions reform. The current UK Government has
made substantial changes to both the operation and level of welfare benefits and
pensions in the UK. Such incomes, in the main, provide the means from which a
person meets any charge applied to the care and support they receive. Consequently,
it will not be clear until after the general election what approach the future UK
Government will take to this reform and its effect on the income of those in Wales in
this position. Moreover, the whole future of welfare benefits in the UK has been called
into question following the Smith Commission on future devolution in Scotland. This
has added a further level of policy instability in this area.
Given this uncertainty, and the importance of this information, I have concluded that I will
not be in a position to make an informed decision about what substantive reform to
introduce in Wales until these matters are better resolved. . Given the timescales involved
it will not be possible to introduce this reform from April 2016 as originally intended.
Nevertheless, I am putting in place from April 2016 an updated financial assessment and
charging framework under the Social Services and Well-being (Wales) Act 2014. This will
strike a balance between protecting those care and support recipients on low financial
means, while at the same time affording local authorities the ability to collect a contribution
to the cost of providing this in order to maintain that provision. The framework will, in the
main, consolidate existing arrangements but will strengthen them in several important
areas to introduce greater clarity and consistency. Main elements of this framework will be:
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one set of financial assessment arrangements rather than the differing
arrangements for charging for non-residential and residential care and support
which presently exist;
maintaining the present weekly maximum charge and “buffer” for non-residential
care and support, as well as the current capital limit used to determine who pays
the full cost of their residential care themselves;
maintain the current individuals, or forms of care and support, for which a charge
cannot be made, e.g. undertaking a financial assessment or six weeks free home
care following a period in hospital;
introduce in line with existing policies the ability for a local authority to charge a low
level flat rate charge for prevention or assistance provided (the provision of
information or advice is exempt from charging under the Act);
introduce more transparency by extending the requirement for all those who receive
a charge to receive a statement detailing this and its calculation;
introduce a consistent, universal review process to enable a person to challenge
charges made and correct errors;
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
maintain deferred payments in residential care to enable those whose property may
need to be sold to pay for this to delay the sale until a time more appropriate for
them; and to introduce the ability of a local authority to charge a low set rate of
interest on the amount deferred so as to help make such arrangements cost neutral
to authorities.
I will consult shortly on the draft regulations and code of practice required under the Act to
introduce such a framework, as part of the second tranche of public consultation on the
regulations, codes and statutory guidance needed to implement the Act.
This new framework will pave the way for introducing further reform once the necessary
clarity is available to do so.
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