Scott Macnab

A £40m funding shortfall in the flagship free personal care policy is to be met by the Scottish Government.

Scottish ministers also plan to step up the pressure for £30m in benefits for older people to be reinstated in a forthcoming summit with Westminster colleagues.

Health Secretary Nicola Sturgeon set out the Scottish Government's response to the recent review by Lord Sutherland into the free personal care policy during a statement in Parliament yesterday afternoon.

She told MSPs that all 12 of Lord Sutherland's recommendations will be implemented by the government.

Ministers will also legislate to ensure that food preparation is not charged for under the policy.

A more open and transparent system is to be introduced, she added, explaining how access to free personal and nursing care is managed.

She said the shortfall in funding had affected the policy in recent years and said that discussions have taken place with local government body Cosla on the issue.

"The Scottish Government will provide additional funding of £40m to local authorities from 2009/10 to help stabilise the policy," she said today.

"Both we and local government agree the need to ensure that the additional funding will deliver improved outcomes for vulnerable older people."

The Scottish Government has asked that the decision by the UK Government to withdraw the Attendance Allowance should be on the agenda at the next meeting of the UK Joint Ministerial Committee.

Westminster withdrew the funding, now worth £30m, to self-funding people in care homes when the flagship free personal care policy was introduced in 2002. But the review last week by its original architect Lord Sutherland criticised the move and called for it to be re-instated.

Ms Sturgeon said yesterday that the decision to withdraw this funding was "deeply unjust and wrong".

She added: "The current funding gap that Lord Sutherland identified would be significantly less if those additional resources were available to invest in care services in Scotland."

Tory health spokesman Mary Scanlon welcomed the commitment to meet the £40m funding shortfall.

Labour health spokeswoman Margaret Curran said the review last week presents challenges, particularly Lord Sutherland's "clarion call" to recognise the profound impact of demographic change.

LibDem Ross Finnie also backed the funding announcement and the plans to implement all 12 of the review recommendations.