The announcement of additional funding for local authorities to cope with long-term care reforms was ‘good news' but further savings and access to financial advice are needed, Partnership has said.
Yesterday's Spending Review revealed the government would make £335 million available to local authorities in 2015/16 to prepare for reforms including the introduction of the cap on care costs from April 2016 and a universal offer of deferred payment agreements from April 2015.
Chris Horlick, managing director of care at Partnership said: "The Spending Review for 2015-16 delivered another round of cuts for Local Authorities with 10% being trimmed from their budgets.
"However, it did contain some good news with additional funds being put aside to help with the introduction of the proposed care reforms and the new national minimum eligibility threshold being confirmed."
This funding will also be under-pinned by a new national minimum eligibility threshold for social care, set at the level operated by the vast majority of local authorities in the current system.
In addition, chancellor George Osborne announced the treasury would put £3.8billion into a pooled budget for health and social care services to work more closely together in local areas to deliver better services to older and disabled people.
Commenting on the government's commitment, Horlick said: "The additional funding will certainly be welcomed by local authorities who are already reorganising services to improve efficiency and deliver savings.
"However, with adult social care needs continuing to grow, further savings will still need to be made."
Research from The Local Government Information Unit has suggested a quarter of people who fund their own care deplete their assets prematurely. As a result such initial self-funders fall back on the state at an estimated cost of almost £500 million a year in England.
Horlick added: "By ensuring that this group of people are referred to independent, regulated financial advice, it could mean that local authorities are protected from this liability.
"It is therefore essential that referral to independent, regulated financial advice is included as part of the Care Bill so that people can be informed of how best to pay for their care needs. Our research demonstrates that only 15% of people would seek advice from a financial adviser - this has to be addressed now."
