NCA Annual Conference 2011

1. NCA Annual Conference 2011 Robert Elliot Chief Executive

2. REALISING THE OPPORTUNITIES

3. Lets LOOK BACK • A new world order is upon us! • It will take 10 years to recover from the credit crunch • UK Government debt was out of control • Sovereign debt would spread throughout Europe

4. LETS LOOK BACK • More Bank bailouts • UK was the most indebted country inside the G20 countries • Tax revenue at its lowest since 1932 • Hyperinflation is on its way!

5. LETS LOOK BACK • US Dollar, Euro and Sterling will continue to lose value • Major cuts in public spending cannot be avoided • Unemployment will continue to rise

6. Am I a smart ass or just ahead of my time?? I’ll let you decide…

7. “THE NEW NORM” • Slow Growth • High unemployment • Broken government • UK Debt is higher now than 12 months ago! • Leading to Stagflation

10. SOUTHERN CROSS • A disaster waiting to happen! • Not prepared to listen • Extremely poor management • All of which was known to the powers that be!

11. FINANCIAL ASSESSMENT 1993 CARCH asked their members to carry out a financial assessment on all self funding residents before they were admitted into the Care Home. Before their time?

12. GUESS WHAT? • Several LAs throughout England have commissioned us to carry out a financial assessment on all potential care clients… • At long last we are starting to see some partnerships developing between the LA and private enterprise.

13. DILNOT REPORT • Widely welcomed across the sector. • Limit the cost of care to £35,000 • Will it be implemented? • What about GRAG? • Excluded items ie: Bonds insurance products • Where can you get DB&B for £27 • What happened to a “Fair Price for Care”?

14. WHAT DID DILNOT NOT SAY? • Where the money is coming from to fund his proposals • What real effect it would have on an individual funding their own care • How do you deal with the “Real cost of Care” ie. the difference between the LA tariff rate and the actual cost the home is charging?

15. Attendance Allowance • Consider how better to align benefits with reformed social care funding system. • Needs re-branding to clarify its purpose • Meaning??? • Abolish Attendance Allowance

16. Case Study • Mrs Jones aged 84 • Property value of £225,000 • Savings of £40,000 • Pension income £13,600 • Care Fees £28,600 • Shortfall £15,000

17. CURRENT SYSTEM • Client is totally self funding until her funds dwindle to £23,250 • The Client can invest the money to obtain a return of £5.66% • The client can purchase an Immediate Care Plan to guarantee her fees for life. • Client entitled to 12 week property disregard

18. DILNOT PROPOSALS • Client remains self funding until her capital reduces to £100,000 • Clients loses Attendance Allowance • Clients contributes £1 for every £250 over the lower limit £14,250 • This means the client contributes to her care fees by £343 per week

19. So are you in the right industry? • The answer depends on your business model. • Do you have a good mix of self funding clients • Can you retain your best staff • Do you have a niche within the care sector • Are you working to a business plan

20. CONCLUSION • Ensure self funders get the correct advice which enables then to pay your fee’s • CareAware and Care Asset can help you achieve a sustainable profitable model.

21. Thank You!