Local authorities are calling for an urgent meeting with health ministers to discuss funding for the Personal Care at Home Bill, announced in the Queen’s Speech and now going through Parliament.

The new law aims to help an estimated 400,000 older and disabled people in England with severe needs to continue living independently in their own homes by providing them with free care in getting dressed, washing and eating.

Currently, council means-tests limmit support to those who have assets worth less than £23,500, which leaves tens of thousands of pensioners to pay for their own help, rely on family members and neighbours or else to move into a residential care home.

The Government claims that the new provision which begins in October, would cost £670million, with central government providing £450million and  local councils expected to make cuts of £250million to provide the rest of the cost of the care.

If this is true, local councils like North East lincolnshire will be forced to raise make cuts elsewhere, or raising council tax to make up the difference

The Association of Directors of Adult Social Services, which is an organisation for senior council officials with responsibility for elderly care, claims the Government has “significantly under-estimated” the real cost of the extra provision.

Its research shows that the average cost of 6.54 hours of care a week costs £200 a week to provide, far more than the £103 claimed by ministers.

Councils will also have to carry out more assessments of needs, as those who currently pay for their own care may become eligible for free services.

The ADASS says the total cost is likely to top £1 billion, with councils expected to find about £500million themselves.

Jenny Owen, ADASS President, said:

“If the final policy means that people with critical care needs will not have to contribute to their care needs regardless of the cost, then funding pressures on local government will clearly be well above the sum estimated by Government.

“Councils will additionally have to bear the costs of undertaking an increased number of assessments as people currently paying for their care enter the system to claim their new, free entitlement.”