Chancellor Rachel Reeves’s recent decision to halt planned changes to England’s care system has been criticised as a “tragedy” by Sir Andrew Dilnot, who authored the original proposals in 2011, as reported by The BBC.
Speaking on BBC’s Today programme, Sir Andrew expressed his disappointment, stating: “We’ve failed another generation of families,” and accused the government of neglecting social care once again. Ms. Reeves explained that financial constraints influenced the decision and said:
On Monday, Reeves announced a series of spending cuts, attributing them to a £21.9 billion overspend by the previous Conservative administration. Shadow Chancellor Jeremy Hunt accused Reeves of using this as a pretext for upcoming tax increases in the October Budget.
The now-scrapped social care plan would have capped the amount older or disabled individuals pay for care at £86,000 starting next October. Beyond this cap, local authorities would have covered further costs.
The threshold for council support would have been raised from £23,250 to £100,000 in assets. The aging population and increasing longevity with complex conditions have placed significant demands on the underfunded and understaffed care system, which has been in crisis for years.
Caroline Abrahams, Director of Age UK, described the cancellation as “really bad news for older people” who had hoped for relief from care costs. She noted the system’s state, saying it has “gone from merely creaking to a state of near collapse in some places.” The Conservative government had previously delayed the reforms by two years and scrapped the National Insurance rise meant to fund them. Reeves estimated that abandoning the cap would save £1 billion by the end of next year.
When asked if the cap might be reintroduced, Reeves mentioned that Health Secretary Wes Streeting would work on improving social care. The Institute for Fiscal Studies warned that without the cap, people might face extremely high care costs, potentially reaching hundreds of thousands of pounds. Senior research economist David Sturrock highlighted ongoing dissatisfaction with the current funding model in the NHS and social care sector, predicting that the government might still need to allocate substantial funds for social care in the future.
Labour’s manifesto did not specify a date for implementing the cap, although Streeting had promised to introduce it if Labour won the election. Sir Andrew Dilnot expressed deep disappointment over the decision, which he described as a severe setback for families needing care and those providing it. He hoped for a return to a serious reform plan soon.
The government has proposed setting up a Royal Commission to develop a cross-party plan for social care. Many in the care sector view another commission as a further delay tactic, prolonging financial and human costs, and increasing pressures on both the NHS and families dealing with a broken system.
