Oral Answers to Questions

Julie Hilling Excerpts

Tuesday 17th July 2012 Commons Chamber

[Mr Lansley]

The hon. Lady knows perfectly well that I have said many times that deprivation can give rise to inequalities in health outcomes. In particular, we are improving substantially the framework for reducing those health inequalities, because we are giving local authorities specific, dedicated resources. Let me make it clear to her that under the public health allocation formula that I outlined just a few weeks ago, no part of the country will see any reduction in its public health resources from the baseline established.

[Julie Hilling (Bolton West) (Lab)]

12. What assessment he has made of the effect on residential care providers of reductions in local authorities’ budgets.

[The Minister of State, Department of Health (Paul Burstow)]

Local authorities choose how best to use their funding; however, the levels of residential care provision are not determined solely by local council social care budgets. The supply of care home places is governed principally by demand from both public commissioners, such as local councils and the NHS, and private purchasers of services.

[Julie Hilling]

Nine out of 10 residential home providers say that low council fees are creating a two-tier system, as new investment is directed at wealthier areas where there are more people who can self-fund, and 82% of those providers say that self-funders are being charged more to cross-subsidise local authority-funded residents. This clearly is not fair, so what is the Minister going to do to rectify the situation?

[Paul Burstow]

We know from the most recent survey published by Laing and Buisson that there has been a 1.4% increase in the fees paid this year, compared with no increase last year. We also know that there is a surplus of places, which accounts for about 10% of the total number of bed places available in care homes up and down the country. So there is actually space, and it is entirely appropriate for local authorities to negotiate appropriate prices to provide good-quality care from one locality to another.