Squaring the Circle of Cost – Credit Crunch
April 22, 2009
Squaring the Circle of Cost – Credit Crunch
With all the doom and gloom of the economy and the consequences of bailing out the banks being a cost that future generations will need to carry, coupled to the Government in today’s budget looking to squeeze public sector finances, how do we continue to meet the ever increasing needs and demands for health and social care as the ‘baby boom’ generation hit retirement age?
The 1990′s saw an era of rapid growth and expansion by the corporate care providers many of whom are now reviewing their growth and development options in the current economic crisis. The 2000′s is seeing the advent of Personalisation and the ability of assessed people to receive ‘cash’ payments and make their own choices in what they purchase to meet their care needs. Quite rightly we have changed the ethos of social care towards the principles of choice, independence, and well being with registered care very much a last resort.
None of the concerns on the ‘time bomb’ of care costs as expressed by Sir Derek Wanless in the 2006 King’s Fund Report have gone away despite the credit crunch. Sir Derek indicated that just to retain existing service levels will require a 139% increase in expenditure between 2002 – 2026 to accommodate the ‘baby boom’ generation which is an increase from £10.1 billion to £24 billion, and represents an increase from 1.1% to 1.5% of the GNP.
To square the circle radical change has to occur in terms of how the cost is met and by whom, coupled to the need to modernise many of our care services for the new age. Perhaps an encouragement is the Government intent to spend more in kick starting construction projects including a whole raft of extra care PFI developments in the pipeline. What is clear as we move further into the 21st Century is the need to modernise our service infrastructures to respond to changing expectations of people in the models of social housing and support services available. What ever the problems with the credit crunch demand for such services will remain on an upwarded track.
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