Report suggests innovative investment could solve elderly care crisis

Social investment could play a leading role in alleviating the crisis faced in social care for older people, but urgent action is needed to make this happen, says a new report released today by Age UK and Big Society Capital.

The report, ‘Scaling up Solutions to Social Care’, by London Economics, highlights the diversity of innovative solutions that are already providing care and support for the growing aging population and calls for urgent action to ensure further growth and expansion.

Age UK and Big Society Capital are calling for the Department of Health and the Cabinet Office to launch an outcomes based Innovation Fund for Social Care, which would provide payment by results incentive for larger-scale investors. Furthermore, commissioning groups should be incentivised by Government to support innovation through social investment.

Finally, a cross stakeholder group of key organisations could be established as an independent body to champion social investment in social care.

By 2022, the over-85 population is expected to grow by 44%. Local Authority spending on social care for older people could rise from £7.4 billion to £9.8 billion by 2022. However, annual spending on adult social care in England fell by £650 million between 2010-11 and 2012-13. According to Age UK, 900,000 older people with a care need are currently going without any support. The potential for social investment to fill the funding gap cannot be ignored.

Caroline Abrahams, Charity Director at Age UK, said: “Social finance isn’t a magic bullet but we believe it has a significant part to play in strengthening social care in this country, particularly by supporting innovation and by helping to bring good ideas to scale. As this report explains, in Age UK’s integrated care programme we are ourselves modelling a new approach to evidencing cashable savings, in order potentially to secure a Social Impact Bond.

“At a time when good quality social care is increasingly hard to get we cannot afford to let any source of support go to waste. With the Government action Age UK and Big Society Capital are calling for today, we could unleash the potential of social finance, and thousands of older and disabled people in need would be sure to benefit as a result.”

Nick O’Donohoe, Chief Executive Officer of Big Society Capital, said: “Charities and social enterprises are well placed to help bridge the widening gap in social care for older people. We need Government, commissioning groups, local authorities and health care professional to work with charities and social enterprises to create an environment where social investment can have the greatest possible impact. If this happens, we firmly believe that social investment could play a significant role in addressing the social care funding crisis”.

There are currently a number of social investment initiatives working to improve the health and well being of older people, including:

• DERiC (Developing and Empowering Resources in Communities), a Community Interest Company that works with community volunteers to supplement personal care budgets in Leeds. Investors are repaid by Leeds City Council through long terms savings to the public purse, allowing them to further invest in community organisations.
• Oomph! deliver exercise classes in care homes, improving physical mobility which reduces the risk of falls and injuries, as well as reducing depression, anxiety and social isolation.

Social investment helped Oomph! scale up their activity across the UK, with investors repaid through their training income stream. As the social investment market grows, these and other solutions could be scaled up and delivered more widely across the UK.

For a copy of the report, or for more information, visit: www.bigsocietycapital.com