 | The Government is set to announce on Monday a major change in the way that older people will pay for their social care needs in future. |
Once it comes into force in April 2017, the amount an individual has to pay for care over their lifetime will be capped at £75,000 and the means-test threshold for residential care will be raised to £123,000.
Much thanks to AgeUK for the bulk of this article, please see AgeUK Contact details for more information about AgeUK locally and nationally. AgeUK also have an excellent website with a wealth of useful information.
Much thanks to AgeUK for the bulk of this article, please see AgeUK Contact details for more information about AgeUK locally and nationally. AgeUK also have an excellent website with a wealth of useful information.
Social care is the name given to the range of care and support services that help frail and disabled people remain independent, active and safe, for example helping with getting out of bed, washing and preparing meals.
Support can be provided in someone’s home, in a community centre or in a care home.
Support can be provided in someone’s home, in a community centre or in a care home.
How Will This Affect Me?
Some of the key points are listed below, for the full article please see this webpage at AgeUK http://www.ageuk.org.uk/home-and-care/social-care-funding---the-lowdown/
1. Introducing a lifetime cap on care costs set at £75,000
The Government have said that they will limit the amount anyone has to pay for care to £75,000 (‘the £75,000 cap’) during their lifetime.
This cap will apply to the cost of care that people receive either in their own home or living in a care home.
It does not include someone's ‘hotel costs’ (i.e. bed and board) if they are living in a care home, these would still be charged separately even after reaching the cap. However hotel costs will be capped as well (see below).
2. Increase the upper level of the means test for people entering residential care to £123,000
The Government have said they would make the means-test (that decides if you are entitled to financial support from your council to help pay your residential care costs) more generous than it is now.
At the moment, your capital and savings below £14,250 are disregarded in the means test. If you have between £14,250 and £23,250 in capital and savings and your need for care reaches the threshold set by your local authority then the council will subsidise your care costs according to a sliding scale.
If you have capital and savings above £23,250 you will have to fund all of your own social care. Your income is also taken into account in the means test, for example pensions and welfare benefits. The lower capital and savings limit of £14,250 will be retained under the new scheme.
Now the Government has announced that it will raise the £23,250 upper limit to £123,000, so in future anyone with assets of between £14,250 and £123,000 whose need for care reaches the appropriate threshold – see more below – will be entitled to some financial support according to a sliding scale.
To put it another way, anyone with less than £123,000 in savings will in future be entitled to at least some financial support to help pay their care costs if they need to enter a care home.
The Government have said that they will limit the amount anyone has to pay for care to £75,000 (‘the £75,000 cap’) during their lifetime.
This cap will apply to the cost of care that people receive either in their own home or living in a care home.
It does not include someone's ‘hotel costs’ (i.e. bed and board) if they are living in a care home, these would still be charged separately even after reaching the cap. However hotel costs will be capped as well (see below).
2. Increase the upper level of the means test for people entering residential care to £123,000
The Government have said they would make the means-test (that decides if you are entitled to financial support from your council to help pay your residential care costs) more generous than it is now.
At the moment, your capital and savings below £14,250 are disregarded in the means test. If you have between £14,250 and £23,250 in capital and savings and your need for care reaches the threshold set by your local authority then the council will subsidise your care costs according to a sliding scale.
If you have capital and savings above £23,250 you will have to fund all of your own social care. Your income is also taken into account in the means test, for example pensions and welfare benefits. The lower capital and savings limit of £14,250 will be retained under the new scheme.
Now the Government has announced that it will raise the £23,250 upper limit to £123,000, so in future anyone with assets of between £14,250 and £123,000 whose need for care reaches the appropriate threshold – see more below – will be entitled to some financial support according to a sliding scale.
To put it another way, anyone with less than £123,000 in savings will in future be entitled to at least some financial support to help pay their care costs if they need to enter a care home.
