Wednesday 13 July 2011

A growing challenge


We are living longer and, generally, we are fitter and healthier at 60 and 70 and 80 than we have ever been before. This is something we ought to celebrate. However, that brings some big challenges.

If we are living longer in our pensioner years, we need to make increased contributions during our working years in order to fund our pensions. We can’t expect that our children, grand-children and even great-grand-children will simply be able to support us out of their current income.

Secondly, in general, as we grow older, we expect and need increased medical care. Together with significant advances in medical intervention – and they always seem to be very expensive – this inevitably means we need to pay more for our health services.

Thirdly, the increase in the numbers of people living longer also means an increase in the number of people requiring considerable social care. Whatever changes are made to continue to support people living in their own homes, it is inevitable that there will be an increase in demand for residential care. Today’s residents of old people’s homes require much more care than those of even twenty years ago. Further, there will be a continuing increase in the number of people who need specialised care because they are suffering from dementia.

These are really big challenges – economically and socially. The challenge is growing every day. It won’t go away by sticking our heads under the pillows. Neither should we believe that it is simply possible to continue as we are.

This is not an issue for cheap political points scoring. All political parties need to work together to find long-term solutions. Therefore, I was pleased that Ed Miliband recently said that he was prepared to work with the government and a wide range of other agencies to find an agreed way forward.

However, this will not be without difficulties, as there are some fundamental differences in values between political parties which will determine their approaches to particular issues.

Just look at the current debate – and industrial action – relating to pensions. Just think about the issue of how much we should contribute to our residential care from our savings, including the value of our homes.

The Dilnot Report inevitably proposes that we will need to increase pension contributions during our working lives, make an increased contribution to personal care of the elderly and disable through our taxes, and insist that those with savings and assets will have to contribute to the cost of care, although there may be a maximum cap on the amount.

It won’t be easy, but neither can the issue be ducked.

Tuesday 12 July 2011

Free electricity …. a good deal?


If something looks too good to be true, it probably is.

That aphorism needs to be at the forefront of our minds whenever we’re offered what looks like a really good deal. It doesn’t mean that there isn’t a good deal to be done. It does mean that we need to ensure we’ve asked all the important questions and satisfied ourselves about the answers before we sign on the dotted line.

Have you been offered free electricity?

Recently, I attended a really useful session about micro-generation organised by Consumer Focus. Last year, it did a really good piece of work on npower which had been overcharging customers for gas supplies, which is why many npower gas customers got a rebate cheque. It’s probably because Consumer Focus had done such a good job that the government is determined to close it down!

But, back to free electricity and micro-generation. Since April last year, electricity suppliers have had to pay a feed-in tariff (also known as ‘clean energy cash-back’) to people who generate their own renewable electricity. There aren’t many of those, you might think. And you’d be correct.

However, a number of companies are now offering free solar panels to some households and businesses. The deal is that the home-owner or business gets free electricity and the organisation takes the income for the surplus electricity produced and fed into the national grid.

Well, free electricity sounds like a really good deal, doesn’t it? And it could be.

But, just think about these questions:
  • What are the guarantees about electricity production?
  • What happens if the kit stops working?
  • Will it affect my mortgage?
  • Do I need planning permission or building regulations approval?
  • What happens if I want to sell my house but the buyer doesn’t want the kit?
  • Who is responsible for any damage to neighbouring properties during installation?
  • What happens if the organising company goes out of business?

And there are many, many more.

So, before you sign up to any such free electricity deal, make sure you do your homework. There’s some really good advice on the website of the Energy Saving Trust.

A growing challenge


We are living longer and, generally, we are fitter and healthier at 60 and 70 and 80 than we have ever been before. This is something we ought to celebrate. However, that brings some big challenges.

If we are living longer in our pensioner years, we need to make increased contributions during our working years in order to fund our pensions. We can’t expect that our children, grand-children and even great-grand-children will simply be able to support us out of their current income.

Secondly, in general, as we grow older, we expect and need increased medical care. Together with significant advances in medical intervention – and they always seem to be very expensive – this inevitably means we need to pay more for our health services.

Thirdly, the increase in the numbers of people living longer also means an increase in the number of people requiring considerable social care. Whatever changes are made to continue to support people living in their own homes, it is inevitable that there will be an increase in demand for residential care. Today’s residents of old people’s homes require much more care than those of even twenty years ago. Further, there will be a continuing increase in the number of people who need specialised care because they are suffering from dementia.

These are really big challenges – economically and socially. The challenge is growing every day. It won’t go away by sticking our heads under the pillows. Neither should we believe that it is simply possible to continue as we are.

It is against this background that we should all welcome the decision of Sheffield NHS Trust to change its decision about the future of two care homes – Woodland View and Birch Avenue.

The Trust had originally proposed removing a £2.8m annual additional grant to the homes, suggesting that this was an unnecessary subsidy and that equivalent care could be provided for considerably less.

I have strongly supported residents, relatives and staff in exploring whether this was really the case. Detailed investigation showed that the homes were providing enhanced care for residents with special needs. Although most of the residents required this level of care, a minority didn’t. However, the demand for enhanced care places is increasing.

Therefore, the Trust has made a sensible decision. All future admissions will be for people who need enhanced and complex care; meanwhile, current residents not requiring such support will be allowed to remain.

It’s the right decision, but it isn’t cheap. The top-up cost alone is equivalent to the total council tax income from 2000 homes. It makes you think.