London facing £877m shortfall due to social care reforms

It will cost local authorities in London £877m to deliver the proposed changes to adult social care funding, a new report is warning.
A report from London Councils reveals that across England the cost of delivering the proposals outlined in the Care Bill could reach £6bn by 2019/20.

Ravi Govindia, London Councils’ executive member for adult services, said: ‘While we support the Bill, we are concerned that councils will have to pick up the tab if it goes ahead as planned without first taking into account London’s circumstances, particularly the high cost of residential care.’
Cash shortfall A new report warns council face a shortfall of £bn in social care funding.

Under the proposals, councils will need to provide financial support once the lifetime limit o care costs reaches £72,000. The means testing threshold is also being raised from £23,250 to £118,000 in April 2016.

The report warns those people paying for residential care in London reaching the proposed limit of £72,000 could be 27%, compared to 3% in other areas.

Mr Govindia said: ‘We would also like to see a comprehensive, government-led communications campaign to ensure that people understand that only care costs count towards the £72,000 limit on personal contributions, with so-called ‘hotel’ costs – room and board – not included. The proposals are a step forward but people must be clear about how the changes may affect them and the extent to which they should still plan ahead.’