The projected funding gap for 2012 to 2041, which was published in “Care Support Independence: The Case for Change” (a copy of which has been placed in the Library) was calculated for illustrative purposes only and no assessment of the current financial situation on the funding gap has been made. The wider issue of the reform of the care and support system is being considered in the Green Paper, due to be published next year.
The requirement for an allowance for expenditure on personal items for those living in residential care settings has its origins in section 22(4) of the National Assistance Act 1948. The National Assistance (Charges for Accommodation) Regulations 1948 set the sum for personal requirements at five shillings per week. These Regulations came into force on 5 July 1948. Due to the passage of time, it has not proved possible to establish the reasons that the level set was felt to be appropriate. Contemporary papers and reports are not available.
The Department now uprates the personal expenses allowance (PEA) annually on the basis of the increase in average earnings. The 2008-09 rate of PEA is £21.15 per week. This took effect on 7 April 2008.