Mind the Cap: choices & consequences for financing social care

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social care

The government has announced its plans for social care reforms – but do they go far enough to address the issues endemic to social care?


Reforming social care – particularly with regards to financing it – has been a major challenge for successive governments over the past decades. Despite widespread acknowledgment of the need to reform the system, it remains in flux. In 2019, Prime Minister Boris Johnson pledged in his maiden speech that he was going to “fix social care”. Following the Covid-19 pandemic, the government has put forward clear proposals for reform – including addressing financing issues by increasing National Insurance contributions by 1.25 per cent to establish a new ‘Health and Social Care Levy’.

To discuss the financing challenges in social care, Public Policy Projects (PPP) hosted a roundtable with senior stakeholders in the sector as part of its “The Future of Social Care” report series in January 2022.


Lack of funding a chronic issue

The new social care reforms were broadly welcomed by participants, although many also expressed concern that the reforms do not go far enough to comprehensively address the depth of the issues in the sector.

“We simply don’t spend enough money on it.”

Lack of funding was, by far, the most recurrent theme of the discussion, with one attendee citing lack of adequate funding as the root cause of current market distortions in the first place.

He argued that “we simply don’t spend enough money on it. Every year, the Budget comes around, and when the social care system continues to be completely on its knees, the Treasury simply adds an extra billion pounds. This is immature. If we have to put an extra billion pounds into social care every year, then let’s say ‘over the next five years, we are going to put an extra billion pounds every year into social care’ so that care providers can plan. And then we don’t have the ludicrous chaos that we have at the moment, there is a barrier to planning there. We have to spend more on social care – and this is not just about older people, it’s about working-age adults as well.”


Where’s the money?

Speaking on the same issue, another attendee referenced historical funding in the care sector and highlighted how insufficient funding has led to an unsustainable market. He illustrated how social care expenditure over the last decade has increased since 2015-16, peaking at record levels in 2021 – largely due to the extra money that went into the system due to Covid-19. Roughly half of spending is on working-age adults and the other half is on older people. Money is indeed coming into the sector, but the question is: where exactly has the money been spent, and is it anywhere close to what is needed?

“The money coming into the system has not been spent on improving access and bringing more people into the system/”

Addressing the first question, the same attendee said, “the money coming into the system has not been spent on improving access and bringing more people into the system.” Consequently, eligibility for care has continued to tighten and has not risen in line with inflation, thereby excluding more people from the publicly funded system.

If that money hasn’t gone on improving access for more people, where has it gone? The answer seems to be on the average fees that local authorities pay for care homes. Indeed, there has been, in real terms, a 4 per cent increase in what local authorities pay for working-age adults and a 17 per cent increase in what they pay for older people’s care. “I don’t think you could argue that the extra money has gone on improvements in quality. Quality measures have stayed static over this period and Care Quality Commission (CQC) ratings have nudged up. Satisfaction ratings of publicly funded clients have also stayed pretty much the same. It seems much more likely that [the extra money] is going to fund home care and care home fees,” the same participant added.


Risk pooling a welcome step

“The private sector will never provide pooling of this catastrophic risk.”

A move by the government that was particularly welcomed by attendees was the notion of risk pooling social insurance. Rather than facing a potentially very uncertain risk profile, everybody effectively pays the same amount and is then covered against those risks. “That is undoubtedly what we should do.” said one attendee. “Social care is the only big risk that we all face where neither the state nor the private sector provides risk pooling. The private sector will never provide pooling of this catastrophic risk, it must be done by the state.” According to him, taking away the catastrophic risks gives us a chance of getting a market that will work not just for individuals, but for providers as well.

Overall, there was widespread agreement that although the new proposed legislation is a step in the right direction, more needs to be done to properly address the chronic financing issues in the sector. Yet, it’s equally important that any money that comes into the system is allocated wisely. Achieve this, and the many other issues in the care sector such as workforce and market fragility, can then be addressed.


This write-up forms one part of the wider Public Policy Projects Social Care Policy Programme. Drawing together key stakeholders from across the private sector, PPP intends to lead the debate on social care reform, to scrutinise and discuss the Government’s plans as they are delivered. Led by the Rt Hon Damien Green, the network continues to convene regularly for high-level strategic roundtable discussions in order to gather intelligence, insight and experience to deliver its recommendations through the publication of four reports.

1. Integrating Health & Social Care: A National Care Service

2. Mind the Cap: choices & consequences for financing social care

3. The Social Care Workforce: Averting a Crisis

4. A Care System for the Future: Digital Opportunities and the Arrival of Caretech

If you are interested in learning more about this significant programme of work, get involved in our work and partner with Public Policy Projects, please reach out to carl.hogkinson@publicpolicyprojects.com

Community Care, News, Social Care, Workforce

Vaccination as a Condition of Deployment: When will the Government listen to social care providers?

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vaccination as a condition for deployment

On 31 January, Sajid Javid, Health and Social Care Secretary, announced a U-turn on the Government’s Vaccination as a Condition of Deployment in health and social care settings (VCOD) policy. This move was anticipated by the press but for providers evoked despair and frustration.


VCOD 1 came into force on 11 November in the care home sector, and its impact cannot be understated. Since the passing of the regulations on 22 July 2021, it has been estimated that up to 40,000 workers have left the sector, a much larger sum than the estimated 12,000 which Mr Javid noted in his statement to Parliament. Since the statement, this figure has been withdrawn, but it demonstrates the Government’s contempt for the sector and lack of understanding of the impact VCOD has had on providers.

As England’s largest and most diverse representative body for independent providers of adult social care, Care England has been at the forefront of the VCOD discussion. The organisation has responded to the consultations for VCOD 1 and 2, along with advising the Department of Health and Social Care (DSHC) on what the Government must do to ensure the sector’s sustainability.


The VCOD timeline:

  • On 20 January 2022, the Department of Health and Social Care (DHSC) published the guidance for VCOD in wider social care settings.
  • Seven days later, on 27 January 2022, DHSC held a webinar for care providers, where the guidance was discussed, along with the Care Quality Commission’s (CQC’s) approach to inspections under the new regulations. DHSC even noted that further guidance was expected to come in the following days.
  • As As required by the implementation of VCOD on 1 April, the care sector was putting in the correct measures to comply with the new regulations, only to discover it was all in vain.

Equal partners

Although there are numerous contributing factors to a decrease in the workforce, it cannot be denied that VCOD was a significant reason. When the adult social care workforce was on its knees, VCOD dealt another blow. Since 11 November, there have been continued reports of care home closures, and throughout Christmas, there were serious concerns about the sector’s sustainability. But providers and their staff alike powered through the changes in guidance and adapted their services so they could provide the valuable care needed to those most vulnerable.

One of the biggest frustrations felt by care providers is the disparity between the attention on the potential consequences of VCOD for the NHS, compared to social care, despite the latter already operating in the midst of the measures. The Government often fail to remember that a correctly funded and resourced care sector could be one of the main support structures for a healthy NHS and therefore should be treated as an equal partner, not a guinea pig for testing the waters for new policy.


Listening to the care sector on vaccinations

To revoke VCOD, the Department of Health and Social Care (DHSC) announced another consultation, despite the Government’s clear intentions. Although the consultation has now ended (lasting one week from the 9th to the 16th of February), it begged the question of why care providers should play along. Knowing that their response would not affect the overall outcome of the consultation, they would have been using precious time that could have been better spent delivering care.

From the two previous consultations for VCOD, it was clear that the idea of mandatory vaccination would have crippling effects on the sector. In the first consultation, 75 per cent of the sector overwhelmingly opposed the measure, with Care England’s view being it should be down to the provider to decide whether mandatory vaccination should be enforced.

Despite continuously stating the negative impact VCOD would have on the care sector, DHSC refused to alter course, creating a huge increase in workload cost and stress for care providers and their employees. The care sector, like the NHS, is not opposed to vaccines and the time and resources used to ensure organisations were in line with VCOD could have been better spent persuading staff to get vaccinated. There is now also the possibility that we will see a higher number of employees resistant to getting their booster as a long-term consequence of VCOD. DHSC estimated that the introduction of the policy would have resulted in a one-off cost to care home providers of £100 million. It should now look to compensate providers for their individual losses resulting from VCOD, given the stress and anxiety they have been put through.

There is also no guarantee that this is the end of vaccination as a condition of deployment. Due to the nature of viruses and mutations, the policy may need to be brought back in. Although this scenario is unlikely, it cannot be ruled out given the turbulent times and the confused policymaking from the Government. We expect that going forward, the Government treats the care sector with the respect it deserves, listens to care providers on important issues and values them as equal partners in the health and social care sector.

Health and care: beyond simply rearranging the furniture

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health and care

For years now, policymakers and health sector stakeholders have pushed for a joined-up system of heath and care. Yet, despite repeated legislative endeavours, there is a worrying lack of clarity as to what successful integration truly looks like.


Perhaps nowhere has this lack of progress been more acutely felt than in the care sector. Concurrent challenges of unprecedented demand, high staff turnover and poor levels of recruitment (in no small part thanks to Brexit) has left the sector on its knees. Then there is the not so small matter of a global pandemic – which cast a spotlight on the stark reality that is the state of England’s health and care system.

Amid widespread agreement that integrating the country’s health and care system drive improvements to patient outcomes;, it is hard to escape underlying feelings of scepticism, particularly, within the care sector, when it comes to the latest attempt at reforming the UK’s health and care system. This sentiment is driven, in part, by the daunting myriad of challenges facing the healthcare sector, creating anxiety amongst care providers that they will get receive support until the NHS can address issues such as the ominous elective care backlog.

The government’s answer? More policy. With its upcoming white paper on social care integration, Whitehall will seek to clarify the outstanding questions and (we hope) finally begin the transition from policy to practice.

To help crystalise these challenges and begin to turn policy into practice, Public Policy Projects (PPP) hosted an evidence session in January 2022 entitled: Integrating Health and Social Care: A National Care Service, as part of its report series: The Future of Social Care. Senior cross-sector stakeholders in social care were convened to highlight the most urgent issues regarding social care, as well as put forward solutions to help progress them within an Integrated Care System (ICS) context.

Unsurprisingly, a recurring theme was enhancing localised decision making within a nationally driven policy agenda –- a balance that has yet to be struck. ICSs must have the autonomy and flexibility to plan and deliver care strategies accordingaccording to the needs of their populations and this unlikely to be achieved through central control.

While the government has insisted that the bill aims to enhance local autonomy, there is considerable scepticism as to whether Whitehall is truly serious about allowing a ‘thousand flowers to bloom’ outside of its control. We may never find a nationally agreed upon metric to accurately and consistently measure the success of integration and there is still worrying lack of clarity as toon what this new “structural cohesion” is supposed to achieve. The fear is that supposed government enthusiasm for integration may turn into frustration when localised decision making inevitably delivers something different than what was exactly envisaged from the centre.


Rearranging the furniture

As far as the care sector is concerned, nothing less than wholesale service transformation will do. ICSs cannot simply be another attempt in a long line of efforts at just ‘moving the furniture’, or simply creating a structural change to hide a desperately under resourced and overwhelmed care sector. Funding disparities between different care settings must be corrected and the ICS agenda must come with new, brave and bold ways of delivering care.

Whatever the debate around integration, the lived experience of the people who are at the receiving end of services must remain central to service reform. The ‘holy grail’ of integration for the care sector is an assurance that people can receive care and remain safe, with dignity, within their own homes for as long as possible.

While care providers share these aspirations, the geographical separation of England’s 17,000 care homes makes local community collaboration difficult. The latest policy around integration does include some specific points to encourage local collaboration. Integrated care boards (ICBs) and local authorities are required to establish integrated care partnerships with the responsibility of convening a broader partnership and producing an integrated care strategy.

In striving for local collaboration, ICBs need not reinvent the wheel. The foundations for health and care partnerships were put in place with establishment health and wellbeing boards, committees tasked with addressing with improving the health of the local population by advancing service integration. The boards were classified as a ‘partnership forums’ with limited formal powers rather than an executive body, and therefore they have had limited impact. However, many stakeholders (particularly from local authorities) believe that the local knowledge of these boards can be used as the ‘glue’ for ICBs to build place-based partnerships and address health inequality in locality.


The money problem

The NHS has been faced with the most challenging period of service provision since its inception – convincing stakeholders to shift resources away from the acute sector will not be easy. But integrated care must come with a rebalancing of the books, or it will be doomed to fail. Can the care sector rely on the goodwill of policy makers and providers to share resources? Or will these sentiments and shared aspirations for place-based care be superseded by growing political pressure to meet targets and reduce hospital wait times?

If any lesson isto be learnt from, it is that the sector cannot consider health crisis under a purely acute sector bracket. If service challenges and the ICS model designed to address them become subsumed under just ‘health’, there is a risk that funding support will be allocated on an acute sector basis – essentially sucking money from the rest of the system. ICSs cannot somehow become an adjunct of the NHS. It’s got to be a completely reformed and reviewed model.

Crucial to securing shared investment across the different facets of an ICS will be the establishment of a shared strategic vision. Strategy drives investment and if systems get this right and allow ICBs to be the guardians of these visions, systems will drive investment.

A theme that has consistently appeared throughout PPP’s The Future of Social Care series so far is the need for patience. The government must give ICSs the time and autonomy they need, while also ensuring that appropriate funding gets to community care. PPP will continue to hold such discussions with key stakeholders to lead the integrated care agenda.


To find out more about this series please write to me at francesco.tamilia@publicpolicyprojects.com

The digital journey of adult social care

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Adult social care

In the face of unprecedented challenge for the sector, many adult social care providers are demonstrating their ability to deliver impressive tech systems. Louis Holmes, Senior Policy Officer for Care England writes for ICJ.


Digital transformation in social care is often overlooked, particularly by those outside the health and care sector; the perception is that care providers are not as technologically mature as their healthcare colleagues. Despite funding issues, the inability to invest in tech, and not having access to the same level of resources as their healthcare counterparts; adult social care providers have demonstrated that they have the capabilities to deliver impressive tech systems, even when facing a crisis.

Outlined below are three case studies from Care England members that demonstrate innovation in the sector. For more innovation to happen however, resolving the funding of new tech must be addressed. Each study shows the benefits of the independent care sector, but the challenges faced when trying to invest in care tech.

At Care England, England’s largest and most diverse representative body for independent adult social care providers, we have seen countless case studies from our membership where there is strong evidence of digital maturity and innovation. Through our Digital Special Interest Group (DSIG), Care England members can ask digital questions or share their experiences with other group members. This space allows organisations to learn about new software, or avoid, when browsing for what is on offer. Members have found this group incredibly useful, thus demonstrating communication and engagement as necessary when discussing digital transformation.


Blackadder

Blackadder is a family-owned and operated group of nursing and residential homes in the Midlands and can brilliantly demonstrate the power of remote monitoring.

At a recent Care England event on the subject, Finance Director Michael Butcher explained that, in 2018, Blackadder set themselves the objective of being able to monitor their care data remotely. The aim of this was to reduce time and administration work when gathering paper audits, and ensure that the right data was available to the right people at the right time.

Through Nourish’s Electronic Care Management System and Power BI, Blackadder can produce hourly, daily, weekly and monthly reports, efficiently and rapidly analysing core care data points within their homes. The next stage of their digital transformation is linking their current system further remote monitoring systems and eMARs.

Integration and interoperability are essential factors care providers need to consider as they expand their digital systems. It can be the case that a provider buys several different software solutions/pieces without realising that they are not compatible with one another, resulting in barriers being created between the different systems. However, it can also be the case where a regional CCG is rolling out a programme that is not yet compatible with the provider’s current system. Thankfully, more is being done to resolve interoperability issues, but it will remain a pertinent problem as we see more technologies become available.


Hallmark Care Homes

To help avoid such instances, Care England member Hallmark Care Homes are creating a business intelligence system through Yellow Fin that collects data from several different systems used by Hallmark. Building a data lake allows Hallmark to mine important information which can then be analysed effectively by the relevant employee.

Programme Delivery Manager Saad Baig has developed a visual traffic light system through intuitive thinking, enabling head office to monitor each care home. Using a traffic light system, Hallmark can identify which homes needs immediate support and which homes are starting to edge towards becoming a concern.

Sophisticated systems such as the one being developed by Hallmark provide further freedom when it comes to choosing the right tech and enables quicker response times and delivery of care. It buys the gift of time leaving health and care workers to focus on their core role of delivering high-quality care.


Canford Healthcare

Sophisticated systems such as the one being developed by Hallmark provide further freedom when it comes to choosing the right tech and enables quicker response times and delivery of care. It buys the gift of time leaving health and care workers to focus on their core role of delivering high-quality care.

Through Microsoft 365, Amanda Rae, Quality & Compliance Manager, has created a user-friendly system that brings together several data and compliance sources, minimising burden and time spent on administration work. Amanda can link and share important tasks and documents using SharePoint, Forms, Teams, Planner, and Power Bi. It allows Canford to create the correct compliance documents that can then be shared with the Care Quality Commission (CQC).

Although it may seem daunting for providers to build a similar system from scratch, Amanda, who led the project at Canford, does not come from an IT background, demonstrating how easy it would be for any provider to build. This sort of innovation needs to be applauded and the huge innovation in ASC recognised, learned from and built on.


Adult social care: going forward

With Integrated Care Systems (ICSs) introductions scheduled for the summer, we must continue these digital discussions and connect care providers to the right people within each new system.

NHSX, with the help of Digital Social Care, has already begun working with some systems and helping develop their digital capabilities. Tools such as the ‘Digital Social Care Records – Assured Supplier List’ helps care providers choose a supplier who has been rigorously selected, ensuring that they can meet and deliver against the national specification.

The Adult Social Care White Paper demonstrated The Department of Health and Social Care’s (DHSC) eagerness to digitise the sector and outlined some bold ambitions. £150 million shall be invested into the sector over the next three years to help drive care providers’ digital journey with the commitment to ensure that at least 80 per cent of social care providers have a digitised care record in place. This is welcoming news, and Care England looks forward to working with the DHSC in achieving these goals.

Through workspaces such as DSIG, we can actively promote and share successful digital stories that help show the digital maturity of the sector and bring care providers to the forefront of digital discussions.


Louis Holmes is Senior Policy Officer for Care England.

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