Self-funders who run out of money cost councils £1bn

Almost two-thirds of councils do not know how many self-funding care users exhaust their own resources and become reliant on state support.

This is despite this group costing English authorities up to £1bn annually, a report out today from think-tank the Local Government Information Unit (LGIU) has found. The report called on councils to provide better information to ensure self-funders get better value for money, preventing them spending their resources so quickly.

Of councils surveyed 61% did not know how many self-funders fell back on state resources each year, the report, published in conjunction with insurance provider Partnership, found.

Partnership has estimated that the annual costs to councils of former self-funders is £1bn, but the report found that many councils underestimate these costs by up to 50%.

It found that just 3% of councils provided self-funders with a list of independent financial advisers who could give advice about ways to fund care.

The report comes with the number of self-funders on the rise, accounting for about 41% of the residential care market. About 25% ultimately fall back on state funding, according to the LGIU.

This is the latest report to identify a lack of support, information and advice for self-funders from councils.

Research published in January by council leaders found many self-funders shunned social services because of perceived stigma and those who did seek help had their low expectations reinforced.

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