We should use Winter Fuel Payments to fund social care reform

Asking the better off to sacrifice a £300-a-year benefit, could save the same people tens of thousands of pounds in care bills.

Care is a lottery and I have published a report, Delivering Dilnot: paying for elderly care, to explain how we might eradicate this lottery. My aim with this CentreForum report is to start an adult conversation about how we pay for care reform. In brief, I am arguing that the money for Winter Fuel Payments should not just disappear into Treasury coffers, but be recycled back into the pockets of those who most need it: the poorest and frailest older people. Ultimately this is about asking the better off to sacrifice a £300-a-year benefit, so that many of the same people can save tens of thousands of pounds in the future. Not an unreasonable exchange.

To illustrate my point let me give you an example. The average price of a house in London is £365,000. Under the current system, someone with these assets faces losing up to 41 per cent of this figure in care costs. Were a cap of £60,000 introduced, this percentage could be cut in half.

In the coalition government’s Mid-Term Review there were some encouraging signs that sorting out care will be our legacy. As I anticipated, the government reaffirmed its commitment to the principles of Dilnot. But more telling, and encouraging, was the language used in the foreword of the review – which confirmed that an announcement on care reform will be made in the coming weeks.

Currently, the state will only start to pick up care costs once a person has less than £23,250 in savings and assets. But this means test for social care in England and Wales is one of the meanest in existence. By contrast, my proposals (based on recommendations from the Dilnot Commission) would raise this figure to £100,000. This change alone would make a huge difference to thousands across the country and would make social care more generous. But because this figure is not the more easily-understood ‘cap’, it rarely gets airtime in the media.

A cap will require new legislation and detailed implementation by local councils over the next few years, so if my proposal were adopted nothing would change until 2015 or 2016. This is an important point to make to those worried that this would affect them in the near future.

I also agree with many members of the public that the 440,000 pensioners who live abroad but who still receive the winter fuel payment should stop receiving the benefit. This is an anomaly in the system that is clearly unfair. But this move would save £100m – nowhere near enough money to sort out our broken care system.

Of course, I would like to pretend there is some pain free way in which the reforms could be paid for, but so far no-one has come up a workable solution. If the Treasury does come up with such a proposal then I will be the first person to applaud it.

The next few weeks will reveal whether this coalition government has the political will and determination that Labour never had to put this issue right. I believe that it does, and I am hopeful we will finally be able to deliver peace of mind to families up and down the country.

Actor Tony Robinson (C) joins campaigners protesting in support of social care opposite Parliament. Photograph: Getty Images.

Paul Burstow is Liberal Democrat MP for Sutton and Cheam and the former care services minister

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To win power, Labour needs to start talking about giving it away

From the House of Lords to First Past the Post, the Labour Party must seek reforms to return power to the people.

The signs were there in 2010. The British electorate failed to give any single party a majority in the Commons, delivering what amounted to a vote of no confidence in Westminster. Since then, voters have taken every opportunity to inform to those sitting on the green benches that they are not content.

The independence referendum in Scotland was closer than many had predicted. The Labour leadership election [in 2015] brought another rejection of the Westminster way of doing things when hundreds of thousands joined the party to elect a leader who opposed the New Labour platform. But David Cameron assumed that the Conservative Party was immune to this spirit of insurgency. Confident that he and his chums could convince the electorate of the wisdom of EU membership, despite decades of anti-Brussels headlines, he rashly called a referendum without considering the implications of defeat.

As with the election of Jeremy Corbyn, those who felt that their voice was no longer heard at Westminster saw the referendum as an opportunity to have their say. Driven by a dispiriting sense that they had lost control of their fate, to the extent that they felt this was no longer their country, they voted to make the rest of us feel the same.

The urge to dismiss this as nothing more than spite should be resisted. These voters feel vulnerable. If we are to believe the majority of them when they say they are not racists – and I do – then we must accept that their complaints about immigration mask other concerns. My hunch is that if they were asked to rank security of employment, of housing and of health care in order of importance, each of these would be a higher priority than security of our borders. And the terrible irony is that a Brexit driven by free-market libertarians is likely to create an economy that is even less secure for low-paid workers and those who rely on support from the state.

If the Labour Party hopes to engage with those vulnerable voters, it needs to win back trust by first showing that it trusts the people. Labour should make accountability its watchword, giving all employees statutory rights, especially those kept on precarious terms by profiteering corporations. A reformed voting system would stop parties listening only to the voices of those living in key marginals. A democratic upper house would offer another opportunity for engaging with people from beyond the Westminster bubble. Devolving power to the English regions, giving them the final say over housing, employment and health care, would allow voters to take back control over their lives and also create a better balance between London and the rest of the country.

To win power, Labour first needs to start talking about giving it away.

Billy Bragg is a musician and campaigner

This article first appeared in the 30 March 2017 issue of the New Statesman, Wanted: an opposition