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Housing investment can mitigate care costs

A greater understanding of how investment in housing could mitigate future social care costs is imperative to council's getting to grips with their budgets, a new report has suggested.

Councils currently do not have enough of an understanding of the age structure of their populations or the costs involved in dealing with their ageing constituencies, the report also states.

The research, published by the Audit Commission, suggests that many local authorities are unaware of the savings that could be made from preventative and collaborative action or from early intervention.

The ageing population is likely to become an increasing issue in the coming years. Between 2000 and 2008, social care spending increased by 46 per cent. Such a level of spending is not sustainable in a downturn though, as the report clearly states: "Council's face the challenge of an ageing population as public spending reduces. The ageing population will affect all councils, the council's partners in housing, health and policing."

This is likely to have an affect on the building industry, as the report calls for councils to have a greater understanding of how investment in areas such as housing could not only improve wellbeing, but also reduce or delay care costs.

In particular, the report states:

• Adaptations to older people's housing can have a payback period, if it enables a person to remain in their own home; and
• Poor housing can increase the need for care if older people can no longer manage in their own homes or if living conditions harm their health.

The report notes that decent housing can mitigate the cost of social care and draws a causal link between poor housing and the need for social care.

The report recommends that councils look to update their sustainable community strategy, medium-term financial plans and service strategies in a bid to reduce the budget for older people's care services by 40 per cent, specifically the price of higher-cost residential care services.

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