FUNDING SOCIAL CARE: THE ROLE OF DEFERRED PAYMENT AGREEMENTS William Mosseri-Marlio and Danail Vasilev March 2017

Funding social care: the role of deferred payment agreements

Acknowledgements The authors would like to thank Rebecca Deegan, Matthew Hibberd, and Duncan Stoddard for their helpful comments on a previous version of the modelling and analysis in this paper. The arguments and any errors that remain are the authors’ and the authors’ alone.

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Contents 1.

Introduction ...................................................................................................................................... 1

2.

DPAs: recent history ........................................................................................................................ 2

3.

2.1.

Eligibility .................................................................................................................................. 2

2.2.

A ‘universal’ deferred payment scheme .................................................................................. 2

2.3.

Uptake since the Care Act 2014 ............................................................................................. 3

Expanding eligibility ......................................................................................................................... 4 3.1.

Who currently benefits from DPAs? ........................................................................................ 4

3.2.

Changing the DPA means-test................................................................................................ 5

3.3.

Merits of reform ....................................................................................................................... 7

4.

Conclusion ....................................................................................................................................... 9

5.

Technical appendix ........................................................................................................................ 10

6.

5.1.

The ELSA sample ................................................................................................................. 10

5.2.

Equivalisation ........................................................................................................................ 10

5.3.

Comparator variables ............................................................................................................ 10

5.4.

Eligibility criteria..................................................................................................................... 11

5.5.

Defining the groups ............................................................................................................... 12

Bibliography ................................................................................................................................... 14

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Funding social care: the role of deferred payment agreements

1. INTRODUCTION England