The Government has been urged to set up a new social investment fund to encourage new ways of tackling the financial crisis in social care for older people.
As the UK’s population ages, local authority spending on social care may need to rise from £7.4bn to £9.8bn by 2022, according to a report by London Economics. During that period the number of people over 85 is expected to grow by 44%.
And yet the shortfall in funding to meet rising need is growing, with spending on adult social care in England falling by £650m between 2010 and 2013.
The report said an Innovation Fund for Social Care based on payment by results could encourage large-scale investors to help fill the void.
It also suggested the Government should incentivise commissioning groups to support innovation through social investment. Key organsations should join forces to establish an independent body to champion social investment in social care, said the report, which was commissioned by Age UK and Big Society Capital.
Caroline Abrahams, charity director at Age UK, said: ‘Social finance isn’t a magic bullet but we believe it has a significant part to play in strengthening social care in this country, particularly by supporting innovation and by helping to bring good ideas to scale.
‘As this report explains, in Age UK’s integrated care programme we are ourselves modelling a new approach to evidencing cashable savings, in order potentially to secure a social impact bond.
‘At a time when good quality social care is increasingly hard to get we cannot afford to let any source of support go to waste.’
Nick O'Donohoe, chief executive of Big Society Capital, said: ‘Charities and social enterprises are well placed to help bridge the widening gap in social care for older people.
‘We need Government, commissioning groups, local authorities and health care professional to work with charities and social enterprises to create an environment where social investment can have the greatest possible impact. If this happens, we firmly believe that social investment could play a significant role in addressing the social care funding crisis.’
