Labour turns its fire on social care cuts

Age UK warns that spending on social care will be cut by 8.4 per cent this year.

The issue of social care is threatening to become yet another headache for the coalition. Despite a pledge by ministers to provide more funding, a survey by Age UK has found that English councils are planning to cut spending on social care for pensioners by £610m this year, or 8.4 per cent. Average net spending on those who need care is set to fall from £2,548 to £2,335. At a time when there are 800,000 older people who need care but do not receive it, a figure that is set to increase to one million by 2014, any suggestion of cuts is toxic for a government.

The care services minister, Paul Burstow, has already responded by arguing that the charity's figures "simply don't add up", claiming that Age UK has factored in only 35 per cent of a £1bn cash transfer from the NHS. He said: "Age UK's research does not give the full picture and they have seriously underestimated the amount of additional support for social care and older people in particular."

But Labour has gone on the attack this morning, warning that this is yet another area in which the coalition is cutting "too far and too fast". The shadow care services minister, Emily Thornberry, said: "Labour warned from the start that the Tories' plans to slash council budgets would mean deep cuts to care services and would see the most vulnerable in our society suffer."

Ed Miliband, who forged close links with charities whilst minister for the third sector, has recently proved adept at using third parties to advance his cause at PMQs. Age UK, which was voted charity of the year by MPs and Lords just a month ago, has provided the Labour leader with yet more evidence to buttress his argument against the cuts.

In the meantime, the debate over the long-term future of social care gathers intensity. The Dilnot Commission is set to recommend that individuals pay between £35,000 and £50,000 towards the cost of their care before the state steps in. This will allow the threshold for means-tested care to be raised from £23,250 to £100,000, ensuring that far fewer need to sell assets such as their family home. After the Tories' cynical "death tax" poster destroyed early hopes of a cross-party consensus, Miliband has made a "genuine and open" offer to try to reach agreement once the commission reports. But George Osborne's threat to "strangle the proposals at birth" and the war of words over cuts means that consensus may prove elusive again.

George Eaton is political editor of the New Statesman.

Getty Images.
Show Hide image

Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.