Money, Money, Money
Other countries with better health and care systems operate a blended funding model to generate the sums required. Paul Honey, Founder, Health Mutual and the creator of CARE FUND and HEALTH FUND, believes the UK could do the same. In this article he explains more…..
I have devised a solution to how the UK can finally solve its ‘Health and Social Care’ funding challenge, in a way that doesn’t involve raising taxes, in recognition of this difficult and sensitive option.
For decades, much has been written about the challenges facing the care sector, including how this impacts the NHS. Underfunding is always referenced because ultimately, alongside the immense efforts of those working tirelessly in both sectors, how we properly fund two vital, interconnected services is the issue that’s not been addressed. It is about MONEY.
Many have reasonably suggested that if Social Care funding can be ‘fixed’, this will benefit the NHS – for example, the prompt discharge of patients into more appropriate care settings, freeing up capacity.
However, the reality is that the NHS takes financial priority over virtually every service our taxes pay for. Earlier this year, a Minister commented “we’re funding the NHS at the expense of everything else”.
The country’s financial challenges are extensive, there’s the competing demands of equally deserving services, and existing tax revenues simply don’t generate the sums required, as record levels of borrowing evidence.
Worryingly, and notwithstanding commissions and reviews, there’s little to suggest that work is being explicitly undertaken, within government or the sectors themselves, about how Social Care and the NHS could be better funded. However reform is defined, we must update our funding model too, otherwise our challenges will remain and likely worsen.
Other countries operate methods alongside tax to generate the sums required. We could do the same, and I have worked out how, utilising my thirty years’ insurance sector experience.
The importance of the NHS and care sector presents a unique opportunity not otherwise offered by any other services our taxes pay for. As a deliberately integrated solution, I believe greater sums can be realised than by attempting to tackle them separately.
CARE FUND and HEALTH FUND are two publicly owned, not-for-profit ringfenced funds that will deliver long-term, reliable sums, enabling the care sector to finally focus on meaningful reform and give it the status many have rightly called for. The NHS’s founding principles are protected, especially in relation to it remaining free at the point of use.
Given the difficulties that tax rises present, it is a voluntary, incentivised solution. Contributors join HEALTH FUND, paying a monthly contribution based on their age. For example, age 30 equates to £30; age 60 equates to £60. Contributions rise annually in line with age – an approach that’s simple to relay and administer.
A mechanism has been incorporated which generates sums specifically for CARE FUND, allowing investment in the sector for the benefit of the whole population. The sums achievable are meaningful. The NHS was awarded a further £29bn this year. In contrast, £4bn a year more was made available for councils to spend on Adult Social Care in 2028-29.
If my solution was being operated, £29bn achieved via HEALTH FUND would generate £11.6bn for CARE FUND.
As contributors have made this additional funding possible, they receive specific benefits in recognition of their participation. In relation to the social care components, and based on the number of years they’ve contributed, contributors will accrue ‘free’ personal care and reduced charges for other care costs, should these services be required in their lifetime. So, for example, if an individual has contributed for 30 years and they require personal care, the first 20 weeks will be provided without charge.
The UK has changed massively since the NHS began in 1948. It’s appropriate to update the relationship between the individual and State, to better meet the needs of our 21st century growing, ageing population, promoting a long-term, shared responsibility reaching across the generations to expand the funds available for two vital services.
The solution embeds with the public the benefits of a better-developed, joined-up, long-term strategy (way beyond the ten-year timeline invariably defined), tackling both funding and reform.
A country cannot properly function without an effective health and care system. Addressing the underlying issue of funding is what motivates me. My solution has not been devised for personal or commercial gain.
If adopted, I will gift the Intellectual Property to the government, to help us have the health and care system we are more than capable of delivering, given the funds to do this.
Further information is available on https://www.healthmutual.org/ and I’m also on LinkedIn https://www.linkedin.com/in/paul-honey-20273131a/
