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Section 5: Counting the costs
In this section you will learn what FACS 2010 says about:- resource Allocation Systems (RASs)
- personal budgets
- self-funding and charging.
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Section 5: Counting the costs
In the future the majority of adults eligible for publicly funded social care support will hold personal budgets. The budget holder may be:
- the person
- their carers
- the council holding a notional budget
- a third party.
In this section we will be looking at the three areas:
- Resource Allocations System
- Self-Funding and charging
- Personal budgets
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Section 5: Counting the costs
Resource allocation systems
Some local authorities are establishing resource allocation systems (RASs). These will enable them to give people an indicative figure, at an early stage, of the level of public funding their needs and circumstances might attract. The purpose is to ensure that individuals with similar levels of need can achieve comparable outcomes. The ways they do this may be very different, to fit their individual situations and preferences. RASs will have to be sufficiently flexible to take these differences into account.
There is as yet no universal resource allocation system. Some groups of local authorities are getting together to develop their own systems. Underpinning all RASs must be the principle of transparency. This is part of developing a more equitable assessment and allocation system for all groups of service users .
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Section 5: Counting the costs
RASs seek to link the money available to personalised outcomes by:
- taking account of the different levels of support people need to achieve them
- allocating the amount of money considered sufficient for the adult or the carer to achieve the agreed and shared outcomes.
The Equality Bill would make it illegal to discriminate on grounds of age in provision of social care services and resources. Councils would need to review their commissioning strategies and arrangement to identify, and take action to address the points on the right:
The Equality bill
- any inequalities that may have built up in their commissioning and resource allocation systems
- the way in which differential staffing ratios and pay structures may affect the cost of care
- how they might build and develop social capital, strengthening the existing capacity of their local communities to support independence and well-being for all citizens.
Click on 'Implications for practice' to find out more
Implications for practice
Resource allocation systems
Local authorities are establishing resource allocation systems (RASs). These will provide people with an indicative figure, at an early stage, of how much public funding their needs and circumstances might attract. The purpose is to ensure that individuals with similar levels of need can achieve comparable outcomes. The ways they do this may be different, to fit their individual situations and preferences.
Staff supporting individuals and families through the FACS process will need to:
- be familiar with the council's resource allocation system, and apply it fairly and consistently
- provide information to people about personal budgets and the options for holding one
- help them to access information, advice and support on managing a personal budget, including peer support from user or carer led organisations and Centres for Independent Living
- advising people on the indicative amounts of money for which they are likely to qualify, so individuals can begin planning their support
- use the council's financial systems to finalise the amount of money allocated to individuals
- make sure individuals, and where appropriate carers, are aware they are required to be accountable for the use of personal budgets, and how any difficulties will be resolved.
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Section 5: Counting the costs
2. Personal budgets
In future, anyone eligible for publicly funded long-term social care support will be offered a personal budget.
Everyone with eligible needs will have access to appropriate help in using personal budgets to direct or arrange their own support.
People will need information and advice about the options available for using personal budgets. Some will prefer a direct payment, others will choose a notional budget held by the council or a third party.
Before the final amount is determined, people will be given an initial indication of the amount of funding that may be available to them. This will enable them to start exploring different ways of meeting their needs, and beginning the planning process.
Click on 'Implications for practice' to find out more
Implications for practice: Personal Budgets
Helping people use personal budgets or direct payments depends on:
- effective support planning with the individual, and where appropriate, their carers.
- person-centred assessment, carried out with the person and their carers, of the level and type of support they need, exploring:
- what outcomes individuals and carers want to achieve.
- the option for managing the personal budget that suits them best.
- what support they are likely to need to manage their personal budget
- identifying personalised solutions to meet agreed and shared outcomes, and maximise choice and control, for people who do not choose the option of personal budgets, and prefer receiving directly managed services.
- providing a written record of the support plan to assist individuals and carers using personal budgets, with clarity about:
- the agreed and shared outcomes for the use of the personal budget.
- how the budget will be used.
- how they are expected to account for the use of the funding.
- how to obtain support with objective-setting and accountability from the local authority or another appropriate source like a Centre for Independent Living.
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Section 5: Counting the costs
3. Self-funding and charging
FACS 2010 aims to change the situation in which people with the means to fund their care are wrongly denied a social care assessment.
FACS 2010 stipulates that anyone seeking or referred for care and support is entitled to an assessment of their needs, and advice on the best ways to meet them, before any assessment of their means takes place.
The objective of FACS 2010 is to ensure that all citizens, including those funding their own care and support have access to information, advice and support to achieve agreed and shared outcomes.
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Section 5: Counting the costs
It is estimated that some 50% of people fund their own care, either completely or partially. In some areas this rises to 90%.
A further group will have paid part or all of the cost of their own services, until their reducing resources reached the level when they qualify for funding from the public purse.
Charging for residential and nursing home care is laid down centrally and revised annually. Local authorities have discretion in the charging levels and criteria for home care, and there is considerable variation in what they charge for, and the level of contribution people are expected to pay.
Select 'Implications for practice' to find out more
Implications for practice
Self-funding and charging
When individuals or carers are seeking or are referred for an assessment, they should be made aware that:
- their individual financial circumstances will determine whether or not they have to pay towards the cost of the support provided.
- their ability to pay will have no bearing on the decision to carry out an assessment of their needs, or on its outcome.
- the basis and level of detail of the assessment process will be the same for individuals and carers, whether or not they have the funds to pay for their own support.
- staff carrying out financial assessments should handle the task sensitively, recognising that people may find it embarrassing or demeaning to be examined on all aspects of their capital, income and outgoings.
- people should be given a clear statement of the basis for any charges, how they can challenge or appeal the results, and sources of reliable and independent financial advice.
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