Planning
One of the biggest changes that will benefit those involved in developing new social care sites is the change to the National Planning Policy Framework. The previous planning guidance stated that ‘it is up to the plan-making body to decide whether to allocate sites for specialist housing for older people’ and only around a third of local plans had a policy in place. The Framework now compels the consideration of ‘retirement housing, housing-with-care and care homes’ in all areas. This means that the needs of both the sector and the population will be considered more readily when local planning authorities look at need.
Investment
Why should Government care about sector investment? The Skills for Care and KD Network Analytics report, The Value of Adult Social Care in England, showed there was a return on investment for the nation of 175%, meaning that for every £1 invested in adult social care, £1.75 is returned to the economy. It means increased employment opportunities for carers and family, improved health and wellbeing for users and staff and less pressure on the NHS. Mostly though, the sector needs cash to expand to meet ever increasing demand.
Those with solid balance sheets and historically strong accounts can attract private investment where needed, but this is not the case for all providers. If Government incentivised private investment to encourage more development, it would be a big step towards creating the care capacity needed. Government involvement could also assist with allaying concerns about private capital putting profit before people. We have not yet seen meaningful steps towards this, but we will be watching Government’s Spring Statement closely.
National Insurance (NI)
Increasing the National Living Wage was a welcome announcement for those working in the sector. However, the accompanying increase in employers’ NI contributions together with lowering the NI payment threshold, was not. The costs were never going to be met by Government’s allocated funding and this meant that they would seemingly be passed to local authorities and private funders. While a House of Lords vote in favour of a sector exemption from increased employers’ NI contributions provided a glimmer of hope, the exemption failed to be upheld in the subsequent House of Commons vote.
Reforms and independent commission to transform social care
The new year renewed anticipation that Government would take steps to improve the current sector landscape. It declared an aim to ‘keep older people out of hospital and living at home independently, for longer’ and appointed Baroness Louise Casey to chair an independent commission into adult social care. The commission will set out a vision for adult social care, with recommended measures and a roadmap for delivery, but the report on medium term progress will not be published until 2026, and the longer-term report not until 2028.
The big technology push
The technology that best supports care is going to be set out in new national standards and trusted guidance on the best technology in care. Government is also going to help technology suppliers know where to invest to grow their businesses and continue to create innovative products that support care, think personal alarms for older people. It is not, however, clear how or when Government is going to achieve either of these noble goals.
What is your reaction to Government’s Spring Statement? Leave a comment on this column or join the conversation to share your thoughts.
Joanne Searle is an Associate in the Real Estate Team at Charles Russell Speechlys. Email: [email protected] Linkedin @Joanne-Searle-Charles-Russell-Speechlys