A discussion paper exploring the way in which the price of care is determined and its implications for social care policy.
Analysts have long identified problems with the way in which the price of domiciliary and residential care in England is determined, whether this is paid for by local authorities, ‘self funders’ (and their families), or a combination of these sources.
However, unprecedented pressure on local authority budgets and the government’s plans to reform long-term care funding in England are pushing the issue of how the price of care is determined to the forefront of social care policy debate.
This discussion paper identifies a number of issues with how the price of care is determined in local care markets, including:
- Local authority monopsony power;
- Relationship between price and quality;
- Price discrimination and excess quality premiums.
The report also identifies how the way in which the price of care is determined affects the broader objectives of social care policy, with key issues including:
- The price of care is not understood by the public;
- Public ignorance of what local authorities pay for care;
- The effect of price discrimination on long-term care funding reform.
With the government implementing reform to the funding of care in England, the report sets out what outcomes it should be seeking to achieve in relation to the way the price of care is determined.
The report includes brand-new polling research into public awareness of the price of care.
- You can download a copy of this report here: Right Care, Right Price.
- Author: James Lloyd, Strategic Society Centre
This project has been made possible by the kind support of Anchor.
You can read about the report in The Independent and Daily Express.