Counsel & Care lecture: Provision for Older People the New Frontier of a Reformed Welfare State
Giving the annual Graham lecture on behalf of the charity Counsel & Care in London today (Thursday 7 September) the former Cabinet Minister Stephen Byers will say that if society is to meet its responsibilities to older people then a new frontier in a reformed welfare state will need to be opened in order to ensure that the needs of the elderly are met in a modern and responsive way.
He will say that the welfare state formed after the Second World War was of necessity paternalistic, top down and uniform. Whereas a reformed welfare state for the 21st century needs to engage and empower individuals; must be a facilitator as well as a provider and should provide choice and control over the service options available.
Stephen Byers will say that the time is right to make a fresh offer to the elderly and that in order to do so the Comprehensive Spending Review must treat provision for the elderly as a top priority.
In his lecture he will propose the following:
• The introduction of care vouchers which would provide tax breaks to help people in work with care responsibilities pay for additional care and support services for their older relatives. The cost of the value of the voucher, say £50 a week would be exempt from both national insurance and income tax. It would be similar to the present scheme that helps working parents with childcare costs through tax breaks on childcare vouchers.
It is estimated that to provide a care voucher scheme for 150,000 people to the value of £50 a week would cost the Government £195 million a year.
• Extend the Carer’s Allowance to those receiving a state retirement pension. At present when someone receiving a Carer’s Allowance of £46.95 a week reaches the age at which they begin to receive a state pension their Carer’s Allowance stops.
This is because the view that has been taken for many years under successive governments that a Carer’s Allowance is paid to replace income for a person who is unable to work because of their caring responsibilities. As the state pension replaces income the allowance stops. Stephen Byers will argue that the Carer’s Allowance is a recognition of the important work which is carried out and therefore should be paid as long as they continue to perform such a pivotal role.
In June 2004 the Government estimated that the net cost pf providing Carer’s Allowance to pensioners would be £145 million a year.
• A new system of funding for social care which is affordable and sustainable over the years has to be adopted. There is a growing feeling of injustice as to how the present system operates which must be dealt with as a major part of the Comprehensive Spending Review.
• A Commissioner for Older people should be appointed for England. Their role would be to oversee provision for older people, would speak on their behalf and be their champion. The Commissioner would present an annual report to Parliament.
• A specific target for the reduction of pensioner poverty needs to be established. This would reflect the situation that applies to child poverty reduction.
• The soon to be established Commission for Equality and Human Rights should give priority to issues concerning older people and give an individual Commissioner responsibility for overseeing this work.
Stephen Byers will say –
“our population is ageing. This will present significant challenges for politicians and the population as a whole.
Important decisions will need top be taken in the next few months. We cannot ignore the difficult issues involved but need to respond in a positive way by opening up a new frontier in a reformed welfare state. One that will ensure that older people can be active, independent and secure.”
