HC Deb 11 January 1999 vol 323 cc36-8W
Mr. Harvey

To ask the Secretary of State for the Environment, Transport and the Regions what the reasons are for no longer including those in residential care, nursing homes and long-stay hospitals when counting the number of people aged 65 years or more for the purposes of calculating the social services elderly residential care standard spending assessment; what assessment he has made of the consequences of this change for local authorities with large numbers of elderly people in residential care, nursing homes and long-stay hospitals; and if he will phase the change in over three years. [64579]

Ms Armstrong

The formula was changed in response to three concerns. First, the previous formula penalised local authorities which placed people in accommodation beyond their boundaries. Such placements counted towards the standard spending assessment for the receiving authority rather than the placing authority. Secondly, the previous formula included people who are funding their own care and are no financial burden on the local authority. Thirdly, the change to the method of calculation makes the formula more consistent with the research on which it was based. That research examined the characteristics of people in private households who were on the point of admission to residential care.

We propose to make this change to standard spending assessments in 1999–2000. SSA Reduction grants will be provided to authorities whose total SSA is reduced substantially through changes in the method of calculation.

Mr. Harvey

To ask the Secretary of State for the Environment, Transport and the Regions if he will list the councils for which the prediction under the standard spending assessment formula for the number of elderly people needing residential and nursing care in 1999–2000 is smaller than the prediction for 1998–99, indicating the difference in each case; and what steps he plans to take as a result. [64580]

Ms Armstrong

Standard Spending Assessments (SSAs) are measures of relative need rather than absolute need. The elderly residential services SSA involves estimating each authority's share of the national total of people requiring residential or nursing care. The change in the method of calculating SSAs and in the data used have led to changes in each authorities' share of the national total of potential elderly supported residents. A table showing these figures has been placed in the House Library.

SSA Reduction grants are provided to authorities whose total SSA is reduced substantially as a result of changes to the method of calculation.

Mr. Harvey

To ask the Secretary of State for the Environment, Transport and the Regions (1) what assessment he has made of the impact on social services of meeting the cost of funding those persons who have taken up places in a private capacity in a residential or nursing home but whose capital subsequently falls below £16,000; [64582]

(2) what research he has undertaken into the predicted increase in demand for residential and nursing care for elderly people in (a) urban, (b) rural and (c) seaside areas in the next year. [64581]

Mr. Hutton

I have been asked to reply.

No such assessment has been made. Local authorities have the lead in arranging and funding social care and it is for them to determine the need for services in their area. They have a responsibility to obtain high quality of care for their clients and value for money, taking into account local priorities and other sources of support available to individuals. The Community Care (Residential Accommodation) Act 1998 was enacted on 11 August and guidance was issued to local authorities concerning residents whose capital falls below £16,000. We are not aware of any major problems in this area.