DEVON ‘DEMENTIA TAX’ CAMPAIGNERS HAND-DELIVER OPEN LETTER FOR CHANCELLOR RACHEL REEVES

Two veteran Army doctors, one diagnosed with a rare form of dementia at just 60, are calling for end to unfair VAT rule that adds 20% to dementia care cost and leaves families unable to afford the care they need.

Two veteran Army doctors hand-delivered an open letter calling on Rachel Reeves to end an unfair VAT rule that adds 20% to dementia care costs faced by local families.

Dr Michael Staunton and his wife Dr Avril Staunton, who was diagnosed with posterior cortical atrophy (PCA), a rare form of dementia, at just 60, were joined by Libby Price and Dr Liz Dennis from Exeter-based The Filo Project and Tiverton MP Rachel Gilmour.

Dementia care is not routinely provided for free on the NHS and therefore families must cover all or part of the cost themselves. It is a permanent, progressive disability caused by diseases of the brain and is not a natural part of ageing.

Michael and Avril Staunton are supported by The Filo Project, a non-profit organisation offering unique, award-winning dementia day care that sees paid hosts welcome into their home for the day small groups of people with early to moderate dementia.

A tax anomaly means The Filo Project must charge families an extra 20% in VAT because they are a Community Interest Company. If they offered the same service as a state-regulated institution or charity the service would be tax-exempt. 

For Filo clients who attend twice a week and pay for all their care, this means families pay over £3,000 per year (£3,120) extra in VAT. Since The Filo Project was set up in 2014, families have paid an extra £500,000 in VAT for their day care.

Dr Avril Staunton, from Bridgwater, who was a notable gynaecologist and authored several books, now attends two Filo Project groups for her dementia day care. Her husband Dr Michael Staunton, says:

“If Avril had a different permanent disability, we wouldn’t have to pay VAT on her care or it would be paid for by the state. 

“The Filo Project is a life saver to me and many other family carers. It’s not a matter of convenience, it’s a lifeline in giving families respite. Especially when I am exhausted and Avril’s needs have escalated. 

“And looking at the bigger picture, day care like The Filo Project saves money for Local Authorities as families are less likely to reach crisis point and need expensive residential care. It’s unfair that a tax anomaly means they have to charge families extra just because they’re a CiC.

“That’s why we made the trip to Westminster to hand-deliver our open letter to Rachel Reeves. We’re calling for this unfair dementia tax to be removed as soon as possible.”

Their open letter has been signed by 150 supporters, many of whom have family members with dementia or who work in social care.

It is also supported by Tiverton and Minehead MP Rachel Gilmour, who says:

“I have seen first-hand the high-quality care delivered by The Filo Project for people with dementia in Mid Devon. Dementia is a very important issue for me, and it is groups like The Filo Project who are providing the important connection, community and care for those with dementia, as well as much-needed respite for their loved ones.

“The Filo Project operates as a CIC [community interest company] and service users are required to pay 20% VAT for each session if their care service isn't commissioned by a local authority.  This in effect creates a two tier system.

“Today I am proud to support the Filo Project’s campaign to remove VAT on CICs that provide crucial dementia care services. Only by removing this VAT will we see the expansion of community-focused service providers like Filo – benefiting people in Tiverton and Minehead and across the UK.”

Libby Price, co-founder and director of The Filo Project adds:

“The Government waives VAT for caviar, yet essential dementia care provided by a social enterprise like ours is considered a taxable luxury service. For many families it means choosing between their loved one receiving care, and eating or heating.

“Removing this VAT wouldn’t cost the Treasury much but would mean the world to families facing dementia.”

The campaigners are urging the Chancellor to make this simple change to the VAT rules at the Budget later this month. More information is available at www.thefiloproject.co.uk/campaign.  

For more information about The Filo Project visit www.thefiloproject.co.uk or call 0333 939 8225.