A national overhaul of the adult social care system will be trialled across North Yorkshire next year - but could leave authorities with a budget deficit stretching into the millions.

North Yorkshire County Council is one of five authorities signed up to be part of the pilot scheme from January, before it is rolled out across the country in October 2023.

It will see a cap of £86,000 placed on each individual's spending on their care in their lifetime, after which the local authority will fund it for as long as needed.

The reforms will also allow people to retain up to £100,000 of their own assets and still qualify for funding for their care. The current limit is £23,250.

While the result will be a benefit to individuals who get to keep more of their own money and pass it on to their relatives, there is an obvious challenge facing local authorities.

NYCC believes the new system could cost it £45m per year more than it currently pays for adult social care, and it has yet to be told how much money it will be given for the pilot scheme, known as 'trailblazers'.

Cllr Michael Harrison, executive member for health and adult care, told the Stray Ferret:

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Cllr Michael Harrison

Implementation of the new equal care fees system has recently been delayed by the government. The new funding structure being introduced next year will also only apply to people entering the care system, not those already in it.

While this takes the immediate pressure off NYCC's budget by phasing in some of the changes, Cllr Harrison and his department's officers know the full impact will be felt in the future.



The changes are set to be funded by the new health and social care levy, brought into effect in April, which has seen a 1.25% increase in National Insurance. The money raised is to be shared between the NHS - which will take most of it - and adult social care.

However, the current Conservative leadership race has seen almost all of the contenders to be Prime Minister declare they would scrap the levy - yet none has said what they would do about funding the scheme without it.

Meanwhile, Cllr Harrison said it has not yet been confirmed what NYCC's share of the money will be to fund the new system coming into force in less than six months.

So why did NYCC agree to be part of the trailblazers project, bringing the problems of the new system forward by nine months?

Cllr Harrison said he believes North Yorkshire County Council has a reputation for being competent and working constructively with central government.

At the same time, North Yorkshire has certain characteristics that can be tested through the pilot scheme: an older than average population, a large, rural landscape, with 500 care providers spread across it, and a relatively high proportion of self-funders accessing services.

The rural nature of the county, along with a higher than average elderly population, make it a useful case study for the government to test how its new system will work.

He also hopes it will be an opportunity to make careers in care better funded and more respected, in line with the council's Make Care Matter campaign.

However, he said, there are clauses in the agreement which will allow NYCC to pull out if the scheme is not working and to revert to the current arrangements until all councils move to the new system after the pilot concludes.

The aim, however, is to go through the trailblazers project with the ear of the government, proving that more money is needed before it can be rolled out further. But will the funding come through?