Our response to the government's plans for reforming social care funding

Responding to the announcement on the government's plans for reforming social care funding, Richard Humphries, Assistant Director at The King's Fund, said:

'Today's announcement is an important milestone on the way to a sustainable settlement for social care in which costs are shared fairly between the individual and the state – a principle we have long argued for. Together with the reforms set out in the draft Care and Support Bill, this at last offers the prospect of replacing the unfairness and confusion of the current system with a clearer framework that will enable people to plan ahead.

'For the first time, individual liabilities will be limited, protecting people against the worst aspects of the current care lottery. The increase in the upper threshold for means-tested support to £123,000 is also a boost for those with modest resources who are most heavily penalised under the current system. The combined effect of the cap and a higher means test threshold will see more people receive public funding.

'However, a cap of £75,000 is higher than the Dilnot Commission recommended and will limit the number of people who will benefit from it - this should therefore be seen as a starting point for future governments to reduce over time, as the economic position improves. Also, by the time it is implemented in 2017, it will be seven years since the government said in the coalition agreement that it understood the urgency of reforming social care.

'In the meantime, pressures on the current system will continue to grow, with many local authorities forced to make further cuts to services. With both the NHS and social care facing significant and growing funding pressures, it is clear that today's announcement is not the end of the journey - difficult choices lie ahead about how much to spend on health and social care and how to fund this.'