25 February 2010

Contents

01 Controversial use of Government funding

02 Electoral Commission campaign to register homeless voters


03 Inter-party squabbling overshadows debate about elderly care funding

FIS Policy E-Newsletter 02 / 2010

01 Controversial use of Government funding

For those concerned about the funding of the Third Sector

Shadow Charities minister Nick Hurd has had a couple of opportunities criticise the Government's use of money recently. Mandate Communications received £4.5k from the Charity Commission to train senior members to answer questions ahead of Commission's annual appearance before the Public Administration Select Committee in August 2008. A Commission spokeswoman said that the training largely consisted of specialist briefing about the committee, its members and issues previously discussed by it. Hurd offered the comment: "I don't think the Charity Commission should be spending taxpayers' money on helping them do a better job of explaining how they are spending taxpayers' money."

The £215 million allocated to the Futurebuilders fund has also come under scrutiny. The fund, set up to help charities win government contracts has long been surrounded by speculation that the fund was short-changed to support the third sector recession action plan, something the government has denied. As the seven-year fund closed for applications two weeks ago, the Cabinet Office confessed there is a possibility up to £3.5million of the action plan funding came from Futurebuilders. Furthermore, £31.3million of the Futurebuilders fund was returned to the treasury unspent, and £29million was used for management fees, meaning just £154.7million was invested. The Cabinet Office justified the management fees spending on the grounds that Futurebuilders is experimental and complex, and that it is normal to include administration costs in investment figures.


02 Electoral Commission campaign to register homeless voters

Relevant to anybody with contact to the homeless

With a General Election taking place before 3 June, time is running out to register to vote. Homeless people may not realize that they can register using their temporary address and may need some encouragement. You can find an encouraging poster from the Electoral Commission here.


03 Inter-party squabbling overshadows debate about elderly care funding

For anybody with an interest in the ongoing social care reform

Despite the concerns outlined in the August 2009 policy e-bulletin, the Government has pressed on with its social care reform program in the absence of a White Paper. The consultation period on the Green Paper ended on 13th November, and a social care Bill formed the heart of the Queen's speech just five days later. The first reading in the House of Commons followed on the 25th, and has since progressed through to the committee stage in the House of Lords.

Difficulties around funding remain the main concern, with the Government proposing three options but yet to decide which one to pursue. Irrespective of this uncertainty, Minister of State Phil Hope in a speech entitled 'Older People and Ageing Britain' promised a 'Big Bang' moment as a solution to the 'Care Crunch', and also held a webchat to assuage some common doubts. In a talk at the King's Fund think tank Gordon Brown made it clear that his ambitions go beyond the current Bill, and shift policy more towards prevention, personalisation and integration. In this respect, there is little difference between the two parties, but real differences emerged over how to fund the expanding care services. Even with the options laid down in the Green Paper, neither party has a definite way of paying for the care reforms; however, it is clear the Tories are leaning towards a voluntary payment of £8,000 on retirement. Health Secretary Andy Burnham has denied that he favours a compulsory £20,000 inheritance levy, labeled a 'Death Tax' by the Conservatives, but refused to rule out a levy with a variable rate.

Shadow Health Minister Andrew Lansley is credited with initiating talks aimed at creating a consensus, which many see as a prerequisite for achieving a solid reform. Needless to say, any hope of consensus collapsed when the Tories launched an early campaign poster alleging a 'Death Tax'. The Tories have simultaneously accused Labour of planning this 'Death Tax' and having 'no idea' how to pay for the reforms. The Conservative case was enhanced by the Local Government Association claiming that the Government's hope that a large portion of the scheme could be paid for with 'efficiency savings' is unrealistic. Following the Tory accusations after consensus meetings, several MPs reported an angry confrontation in which the normally mild-mannered Burnham shouted at Lansley: "You have bloody shafted me" and Gordon Brown accused the Tories of taking a u-turn. Several Cabinet members are known to favour the 'Death Tax', but the Government is reluctant to pursue so a radical a policy before an election.

The row that followed the breakdown of the fledgling consensus has superseded the Bill as the story. Figures in all three parties have weighed in with some choice jibes, and television viewers saw a heated discussion between the Health Ministers of all three parties on the February 14th edition of the Politics Show. The BBC's political correspondent Reeta Chakrabarti reported "an attempt to take the politics out of personal care" had resulted in "bitterness and squabbling" and become a "huge unresolved problem". Eighteen Charities responded by jointly writing to 'The Times' calling for an end to the issue being used for political point scoring. Age Concern convened a 'crisis summit', which the Conservatives attended after initially declining to do so.



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