The Spending Review has not earmarked any State money for LTC funding
Chancellor Gordon Brown has failed to include long term care (LTC) funding in his recent Spending Review ' adding to the growing funding crisis faced by elderly people in need of care.
Although the review promised a 7.3% increase in overall health spending, Brown ignored the increasing numbers of care homes facing closure and failed to earmark State spending for LTC costs.
The charity Help the Aged condemned the move: 'The crisis in care for older people has been ignored by the Chancellor. The chronic underfunding of social care has led to a haemorrhaging of long term care places and a reduction in the number of older people receiving essential home care.'
Thirty-four charities have written to Jacqui Smith, the health minister, claiming the 6% rise for Social Services announced in the Budget would fail to make sufficient impact to meet care needs.
Demand for care home places is set to outstrip supply by 2005, according to Conservative Party leader Iain Duncan Smith ' who accused the Government of crushing care homes with red tape at a recent Prime Minister's Question Time. The party claimed over 130,000 more people each year will require residential care than currently receive it, and regulation could force up to 2,000 care homes to close over the next five years.
The Government's reluctance to push funds into LTC provision for the elderly could mean more people will turn to insurance to fund their future care needs.
Brian Fisher, long term care marketing manager at AXA, said although more care homes looked likely to close, it should not affect LTC insurance policyholders as most clients choose to receive care at home.
'You have to remember the majority of people want to stay in their own home. Only 23% of our claimants are in nursing homes. Those who choose to move into a home are in a better position than those relying on the State or a fixed budget as they have a wider choice of which home to go,' he said.
