Wes Streeting has disclosed that his proposal to ban 'private equity sharks' from the social care sector was removed from the Labour manifesto, as he criticized the government for 'overcautiousness' in reforming the industry.
Streeting's Critique of Labour's Approach
In a Fabian Society report on establishing a national care service, Streeting described overhauling social care as 'one of the defining challenges of our age' but noted that an 'absence of good political leadership' was impeding progress. He stated: 'In opposition, social care became a victim of our overcautiousness, which prohibited policy ideas from being floated for fear of what the Tories might say. My plan to boot private equity sharks out of social care was cut from the manifesto, as was a proposal for a royal commission. The same culture continued into government.'
Private Equity Policy Details
The private equity policy, first announced in 2022, would have banned firms that failed to meet national standards in care, workers' rights, and financial sustainability. A Labour source indicated that Keir Starmer's team removed the policy from the manifesto due to concerns it appeared 'anti-business'.
Delays and Future Plans
Streeting noted that 'Downing Street delay' means the Casey commission, reviewing adult social care reform, will not conclude until 2028, making major changes before the next general election unlikely. He warned: 'Go on as we are and I predict social care will once again be sacrificed on the altar of an election campaign. We must not repeat the mistakes of the past.'
Streeting resigned as health and social care secretary and called for Starmer's resignation after the May elections. He is expected to run in any imminent leadership contest. Andy Burnham, another potential leadership candidate, indicated he would fix the social care system 'this year' and 'wouldn't flinch from it'.
Proposed Reforms
Streeting plans to resurrect his private equity regulation plans in a future government. He also advocates for a social care sponsorship body to remove employers' power over workers under the current visa model, which leaves workers vulnerable to modern-day slavery.
Other Criticisms
Anna Dixon, Labour MP for Shipley, criticized the government's slow progress, asking: 'Why is it that the care and support needs of millions of disabled people and older people are so often relegated to the bottom of ministers' to-do lists?'
Labour's 2024 manifesto pledge to 'create a national care service underpinned by national standards' was shaped by a previous Fabian Society report. Ben Cooper, co-author of that report, said: 'Labour needs a bold and transformative agenda for the second half of the parliament. Whatever happens with the Labour leadership, the national care service must be the centrepiece of this plan.'
Government Response
A Department of Health and Social Care spokesperson said: 'This government is firmly committed to creating a National Care Service, and over the past two years we have begun paving the way. We are already improving support for adult social care, including through £4.6bn additional funding for local authorities, introducing a fair pay agreement for care workers, strengthening support for unpaid carers and people with disabilities, and providing £723m to help tens of thousands of people with disabilities adapt their homes. Baroness Casey's first recommendations on delivering a National Care Service will be published later this year.'
The Labour party has also been contacted for comment.
