Jeremy Hunt reinstates cap on the amount people pay for social care

A cap on "punitive" costs will form part of the Government's social care reforms, Health Secretary Jeremy Hunt has said.

In a move that would reverse the controversial and electorally damaging decision to ditch a cap from the Conservative election manifesto, Mr Hunt said it would be reinstated to help spread the risk posed by the "illness lottery" of conditions such as dementia.

In his first speech since he took responsibility for a Government Green Paper on social care, he said the cap would be part of a number of "risk-pooling" measures.

Mr Hunt told an audience of health and social workers that funding would be based on "a partnership between the state and individuals".

As well as a cap, underwritten by Government, the Green Paper is likely to propose a saving or insurance scheme for young people.

The elderly may face tax rises, perhaps in the form of national insurance for working pensioners, or a levy on property wealth.

"The way that our current charging system operates is far from fair," he said.

"This is particularly true for families faced with the randomness and unpredictability of care and the punitive consequences that can come from developing certain conditions over others.

"If you develop dementia and require long-term residential care, you are likely to have to lose a significant chunk of your savings and the equity in your home to pay for that care.

"But if you require long-term treatment for cancer you won't find anything like the same cost.

"So people's financial wellbeing in old age ends up defined less by their industry and service in their working lives and more by the lottery of which illness they get.

"We therefore need a system that includes an element of risk pooling."

Social care was hugely controversial during the election after the Conservative manifesto abandoned a cap on care costs, instead proposing a "floor" of £100,000 beyond which assets would be protected.

Within days, the Prime Minister said she would introduce an "absolute limit" on the money people will have to pay.

Mr Hunt said seven principles would guide the reforms: quality and safety; integrated NHS and social care; giving control to those receiving care; a valued workforce; better practical support for families and carers; a sustainable funding model; and greater security for all.

In 2011 a review by Sir Andrew Dilnot proposed a cap of £35,000, a proposal accepted and subsequently ditched by David Cameron ahead of the 2015 election.

The level of any new cap, and the wider mechanism for meeting rising social care costs, will be determined by the Green Paper due to be published in the summer.

As well as a cap other proposals understood to have been floated include an insurance model for younger people to pay into, and requiring working pensioners to pay National Insurance.

Social care is acknowledged as one of the most pressing issues facing the country, with rising demand already having a huge impact on NHS services.

It has also emphasised the disparity between free provision of healthcare costs for illnesses such as cancer, and means-testing for conditions such as dementia.

While healthcare is met from the ring-fenced NHS budget social care is met by local authorities, which have faced declining budgets over the last eight years.

Outlining a "blueprint" for the Green Paper, Mr Hunt said health and social care services will need to work more closely in future, and standards of care needed to rise.

Jeremy Hughes, Alzheimer's Society Chief Executive said: "Jeremy Hunt's seven principles must not be wishful thinking for those impoverished by having dementia.

"The Government must now commit the funding to make good on these principles.

"Without the necessary funding, vulnerable people will continue to struggle needlessly.

"By 2021, a million people in the UK will have dementia, and we need urgent action to create a system that can meet that challenge."