Cash-strapped Derbyshire County Council slashes 'capital limit' for adult care support eligibility

Councillor Natalie Hoy, Cabinet Member for Adult Care, told a cabinet meeting that the best option to help maintain adult care was to introduce the national capital limit of £23,250 – which means anyone who has more than this figure will have to pay for support.

The Conservative-led council previously allowed a £50,000 capital and disposable income limit for people to benefit from the local authority’s subsidised care services but the cabinet has now agreed to lower this limit to £23,250 so only those with less than this reduced figure will be eligible for subsidised council care.

Cllr Hoy said the council had not made any changes for many years to its adult care provision but the new system was necessary to ensure it could sustain and continue to deliver high quality services but the authority is still committed to helping people so they can remain independent at home.

Derbyshire County Council Leader, Cllr Barry Lewis, told Cllr Hoy: “It’s interesting you point out there have been no changes in the last nine years and given where we are with the financial difficulties we are facing, doing nothing is not an option. As tough as this is and it is going to be tough, unfortunately it has to be done.”

As part of the agreed policy change to adult care services, the council will charge the national tariff income of £1 in every £250 for those with capital of between £14,250 – £23,250, and charge on 90per cent of a total disposable income, but it will provide a £20 a week discount known as a disability related expenditure disregard.

Cllr Hoy explained the changes will now be more in line with the limits allowed within national charging guidelines and those already applied by many local authorities across the country.

She also added that the changes are still more generous than the limits allowed nationally and they will balance the need to assist people with lower capital who need adult care the most while generating income to ensure services can continue.

In an effort to further explain the council’s financial position, Cllr Hoy told the meeting that the council expects to receive an income of just over £10m in the next financial year but the actual cost of caring for people is over £127m.

Deputy Council Leader, Cllr Simon Spencer, Cabinet Member for Corporate Services and Budget, said: “We recognise this is a delicate area for the council. It’s a huge percentage of our overall budget-spend in the council and we have to make sure it’s sustainable and affordable for the tax-payers of Derbyshire.”

The county council’s adult social care supports the elderly, those with illnesses, disabilities and mental incapacities, and the council has stated these changes will not affect anyone living permanently in a residential or nursing home.

Its new policy is expected to come into effect from July 15, 2024, to allow people time to adjust and a yearly inflationary increase will not be applied in April.